The Reserve Bank of India (RBI) has issued the Commercial Banks – Prudential Norms on Capital Adequacy (Amendment) Directions, 2025, following a review after the issuance of the Concentration Risk Management Amendment Directions, 2025. Exercising powers under Sections 21 and 35A of the Banking Regulation Act, 1949, RBI has deemed it necessary in the public interest to amend the existing Directions. The key modification introduced is the deletion of Paragraph 78 under Chapter IV – Risk Weighted Assets (RWAs), which impacts the framework for calculating RWAs for commercial banks. This amendment aims to streamline prudential norms for capital adequacy and aligns the capital computation methodology with updated risk management practices. The changes are designed to ensure that commercial banks maintain appropriate capital buffers while effectively managing concentration risks. The amendment will come into effect from January 1, 2026, providing banks with clear guidance on updated regulatory requirements for capital adequacy.
RESERVE BANK OF INDIA
RBI/2025-26/130
DOR.CRE.REC.335/21-01-002/2025-26 | Dated: December 4, 2025
Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2025
Please refer to Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’).
2. On a review consequent to the issuance of Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025, and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 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:
Paragraph 78 contained under ‘Chapter IV – Risk weighted assets (RWAs)’ shall stand deleted.
4. The above amendment shall come into force from January 1, 2026.
(Vaibhav Chaturvedi)
Chief General Manager
