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

The Reserve Bank of India has issued the Commercial Banks – Prudential Norms on Capital Adequacy (Amendment) Directions, 2026, effective immediately, amending its 2025 Directions under Section 35A of the Banking Regulation Act, 1949. The amendment revises risk-weighting norms for banks’ claims on non-resident corporates by updating paragraph 49 and formally recognizing additional international credit rating agencies under paragraph 132. Risk weights are now explicitly mapped to ratings assigned by S&P, Fitch, Moody’s, and—specifically for exposures originating at International Financial Services Centres (IFSCs)—CareEdge Global IFSC Limited, with a distinct table prescribing differentiated weights. The Directions also tighten treatment of unrated exposures: claims exceeding ₹200 crore in aggregate banking exposure, or those previously rated but later unrated with exposure above ₹100 crore, attract a higher 150% risk weight. Further, unrated corporates cannot receive preferential treatment over their sovereign of incorporation. These changes aim to strengthen prudential consistency and risk sensitivity in capital adequacy assessments.

RESERVE BANK OF INDIA

RBI/2025-26/189
DOR.STR.REC.390/21-01-002/2025-26 | Dated: January 09, 2026

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

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, and in exercise of the powers conferred by the section 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: (1) Para 49 shall be substituted by the following:

“49. 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 10.2 below.

Table 10.1: Claims on non-resident corporates – risk weight mapping for the ratings assigned by S&P/Fitch/Moody’s Ratings

Table 10.2: 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 132 shall be substituted by the following:

“132. A bank 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