The Reserve Bank of India (RBI), exercising powers under Section 35A of the Banking Regulation Act, 1949, has issued the RBI (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025, effective immediately. These directions aim to strengthen the capital framework of commercial banks to ensure financial stability and safeguard public and banking interests. The Directions apply to all commercial banks, including the State Bank of India and corresponding new banks, but exclude small finance banks, payment banks, and local area banks. By setting prudential norms on capital adequacy, the RBI emphasizes maintaining sufficient capital buffers against potential risks and losses, thereby enhancing the resilience of the banking sector. These measures reflect RBI’s proactive approach to safeguarding systemic stability, promoting prudent risk management, and ensuring that banks remain adequately capitalized to meet regulatory and operational requirements in line with national banking policy and international best practices.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/151
DOR.CAP.REC.70/21-01-002/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Directions, 2025
In exercise of the powers conferred by section 35A of the Banking Regulation Act (BR Act), 1949 the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest and in the interest of banking policy so to do, hereby, issues the Directions hereinafter specified.
Chapter I
Preliminary
A Short title and commencement
1. These Directions shall be called the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025.
2. These Directions shall come into effect immediately upon issuance.
B Applicability
3. These Directions shall be applicable to Commercial Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’).
For the purpose of these Directions, ‘Commercial Banks’ means banking companies (other than Small Finance Banks, Payment Banks, and Local Area Banks), corresponding new banks, and the State Bank of India, as defined respectively under clauses (c), (da), and (nc) of Section 5 of the Banking Regulation Act, 1949.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/151MD.pdf
