RBI AIFIs Prudential Norms on Capital Adequacy) Amendment Directions, 2026

Reserve Bank of India has issued the All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy (Amendment) Directions, 2026, effective immediately, to revise risk-weighting norms for claims on non-resident corporates. The amendment substitutes key provisions to update how such exposures are risk-weighted based on international credit ratings. It prescribes revised risk weights for ratings assigned by S&P, Fitch, and Moody’s, and introduces a distinct risk-weight mapping for ratings issued by CareEdge Global IFSC Limited for exposures originating from the International Financial Services Centre (IFSC). Importantly, the directions impose stricter treatment for unrated exposures: claims with aggregate banking system exposure exceeding ₹200 crore, or exposures that were earlier rated but later became unrated with exposure over ₹100 crore, will attract a higher 150% risk weight. Further, unrated corporate claims cannot receive a risk weight lower than that of the sovereign of incorporation. The amendment also formally recognises CareEdge Global IFSC Limited as an eligible rating agency for specified IFSC-origin exposures.

RESERVE BANK OF INDIA

RBI/2025-26/191
DOR.STR.REC.392/ 21-01-002/2025-26 | Dated: January 09, 2026

Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential
Norms on Capital Adequacy) Amendment Directions, 2026

Please refer to Reserve Bank of India (All India Financial Institutions (AIFIs)-Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. On a review, and in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. The Amendment Directions modifies the Directions as under:

(1) Para 44 shall be substituted by the following:

“44. The claims on non-resident corporates shall be risk weighted as under as per the ratings assigned by international rating agencies. Further, with regard to claims on all non-resident corporates originating at International Financial Services Centre (IFSC) for which ratings are assigned by M/s CareEdge Global IFSC Limited, the mapping shall be as per Table 9.2 below.

Table 9.1: Claims on non-resident corporates – risk weight mapping for
the ratings assigned by S&P/Fitch/Moody’s Ratings

Table 9.2: Claims on non-resident corporates – risk weights mapping for the
ratings assigned by M/s CareEdge Global IFSC Limited  for claims originating
at International Financial Services Centre (IFSC)

Explanation –

(i) Unrated claims having aggregate exposure from banking system of more than ₹200 crore shall attract a risk weight of 150 per cent.

(ii) Claims with aggregate exposure from banking system of more than ₹100 crore which were rated earlier and subsequently have become unrated shall attract a risk weight of 150 per cent.

(iii) No claim on an unrated corporate shall be given a risk weight preferential to that assigned to its sovereign of incorporation.”

(2) Para 125 shall be substituted by the following:

“125. An AIFI may also use the ratings of the following international credit rating agencies (arranged in alphabetical order) for the purposes of risk weighting its claims for capital adequacy purposes where specified:

(i) CareEdge Global IFSC Limited (for all non-resident corporate exposures originating at International Financial Services Centre (IFSC));

(ii) Fitch;

(iii) Moody’s; and

(iv) Standard & Poor’s.”

4. The above amendment shall come into force with immediate effect.

(Vaibhav Chaturvedi)
Chief General Manager