Summary: The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Miscellaneous) Amendment Directions, 2026, through Circular No. RBI/2026-27/285, DOR.MRG.REC.No.241/00-00-001/2026-27, dated 7 October 2026. The amendment concerns the existing provisions on deferment of option premium contained in Sub-section D of Chapter IV of the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025. RBI has decided to delete Paragraph 38 of the principal Directions following a review undertaken consequent to the issuance of the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Amendment Directions, 2026.
The notification provides that Sub-section D of Chapter IV, consisting of Paragraph 38, shall be deleted from the 2025 Miscellaneous Directions. The provision identified for deletion relates specifically to deferment of option premium. The amendment is connected with RBI’s broader regulatory revisions concerning counterparty credit risk and derivatives-related prudential requirements. The related Standardised Approach for Counterparty Credit Risk (SA-CCR) framework addresses the regulatory treatment of derivatives exposures, including deferred option premiums. However, the present notification itself is confined to deleting the specified provision from the Commercial Banks – Miscellaneous Directions, 2025.
The amendment has been issued in exercise of powers conferred under Section 35A of the Banking Regulation Act, 1949, together with other statutory provisions enabling RBI to issue directions in the public interest. The Reserve Bank expressly states that it is satisfied that the amendment is necessary and expedient in the public interest. The notification identifies the existing provision being removed and specifies the effective date without prescribing any additional replacement text within the Miscellaneous Directions.
Importantly, the Amendment Directions shall come into effect from 1 April 2027, rather than from their date of issue. Accordingly, the deletion of Paragraph 38 becomes operative on that date. Commercial banks dealing with options and related derivatives arrangements should take note of this regulatory change when reviewing the applicable provisions governing deferred option premiums. The notification is signed by Sunil T S Nair, Chief General Manager, Reserve Bank of India.
RESERVE BANK OF INDIA
RBI/2026-27/285
DOR.MRG.REC.No.241/00-00-001/2026-27 | Dated: October 7, 2026
Reserve Bank of India (Commercial Banks – Miscellaneous) Amendment Directions, 2026
Please refer to Sub-section D of Chapter IV of the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025 on deferment of option premium.
2. On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Amendment Directions, 2026, and in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other provisions / 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. (i) These instructions shall be called the Reserve Bank of India (Commercial Banks – Miscellaneous) Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from April 1, 2027.
4. The Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025, are amended as provided below.
4.1 Sub-section D of Chapter IV (Paragraph 38) shall be deleted.
(Sunil T S Nair)
Chief General Manager
