The Reserve Bank of India (RBI) has issued final Amendment Directions on Capital Market Exposure (CME) for Commercial Banks and Small Finance Banks after reviewing stakeholder feedback on draft Directions released on October 24, 2025. The revised framework provides an enabling structure for banks to finance acquisitions by Indian corporates and enhances lending limits against shares and units of REITs and InvITs. It also removes the regulatory ceiling on lending against listed debt securities and introduces a more principle-based framework for lending to capital market intermediaries (CMIs). The amendments impact multiple regulatory frameworks, including Credit Facilities, Concentration Risk Management, Prudential Norms on Capital Adequacy, Financial Statements and Disclosures, and Undertaking of Financial Services. The RBI has incorporated modifications based on stakeholder comments and issued corresponding amendment directions across relevant prudential and risk management guidelines. The changes aim to balance credit expansion with appropriate risk oversight in capital market exposures.
Reserve Bank of India
Date: Feb 13, 2026
RBI issues Amendment Directions on Capital Market Exposure
The Reserve Bank of India had, on October 24, 2025, issued two draft Directions on Capital Market Exposure (CME), viz.,: (i) Reserve Bank of India (Commercial Banks – Capital Market Exposure) Directions, 2025 and (ii) Reserve Bank of India (Small Finance Banks – Capital Market Exposure) Directions, 2025 seeking feedback from stakeholders. The draft Directions were aimed primarily to (i) provide an enabling framework for banks to finance acquisitions by Indian corporates; (ii) enhance the limit for lending by banks against shares, units of REITs, InvITs while removing the regulatory ceiling altogether on lending against listed debt securities; and (iii) put in place a more principle-based framework for lending to capital market intermediaries (CMIs).
Feedback received on the drafts has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the final Directions. A statement on the feedback received on the drafts is provided in the Annex.
Accordingly, the Reserve Bank has today issued the following Amendment Directions, with updates as and when they become effective.
i. Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026.
ii. Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2026.
iii. Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026.
iv. Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Third Amendment Directions, 2026.
v. Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026
vi. Reserve Bank of India (Small Finance Banks – Credit Facilities) Amendment Directions, 2026.
vii. Reserve Bank of India (Small Finance Banks – Concentration Risk Management) Amendment Directions, 2026.
viii. Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026.
ix. Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2117
