Draft RBI (Commercial Banks – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026

The Reserve Bank of India has issued draft Fifth Amendment Directions, 2026, to revise the Prudential Norms on Capital Adequacy for commercial banks. This amendment follows recent changes in the investment portfolio framework and aims to ensure regulatory consistency across related directions. Exercising powers under Section 35A of the Banking Regulation Act, 1949, the RBI has proposed deletion of sub-paragraph 21(i)(b) from the existing 2025 Directions. The change reflects a broader alignment of capital adequacy norms with updated investment classification and valuation guidelines. By removing this provision, the RBI seeks to eliminate redundancy and streamline regulatory requirements, thereby improving clarity and coherence in prudential norms. The amendment will come into force upon its publication on the RBI’s official website and is currently open for stakeholder comments as part of the consultative process.

Reserve Bank of India

RBI/2026-27/
DOR.MRG.REC. No. /00-00-001/2026-27 | Dated: XX, 2026

Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026 – Draft for Comments

Please refer to Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025, dated November 28, 2025.

2. On a review, consequent to the issuance of Reserve Bank of India (Commercial Banks – Classification, Valuation, and Operation of Investment Portfolio) 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 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 Directions shall be called the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026.

(ii) These Amendment Directions shall come into effect on the day these are placed on the official website of the Reserve Bank.

4. The Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025, are amended as provided below.

(i) Sub-paragraph 21(i)(b) shall be deleted.

(Sunil T S Nair)
Chief General Manager