**Executive Summary**
This document outlines the Reserve Bank of India's Amendment Directions, 2026 regarding prudential norms on capital adequacy for All India Financial Institutions (AIFIs). The directions modify existing norms for risk weighting claims on non-resident corporates, effective immediately as of January 09, 2026. It provides updated risk weight mappings based on ratings from international rating agencies, including CareEdge Global IFSC Limited.
**Key Points / Main Content**
* **Risk Weighting for Non-Resident Corporates:**
* Para 44 of the original directions is substituted.
* Claims on non-resident corporates are to be risk-weighted based on ratings assigned by international rating agencies.
* Claims originating from International Financial Services Centre (IFSC) and rated by M/s CareEdge Global IFSC Limited will use the risk weight mapping in Table 9.2.
* Table 9.1 provides risk weight mapping for claims based on S&P/Fitch/Moody's ratings.
* **Risk Weight Mapping Tables:**
* **Table 9.1:** Claims on non-resident corporates - risk weight mapping for the ratings assigned by S&P/Fitch/Moody's Ratings.
* **Table 9.2:** 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 of Risk Weight for Unrated Claims:**
* Unrated claims with aggregate exposure from the banking system exceeding ₹200 crore attract a risk weight of 150%.
* Claims exceeding ₹100 crore that were previously rated but became unrated also attract a 150% risk weight.
* Unrated claims cannot receive a risk weight lower than the sovereign risk weight of the corporation's incorporation.
* **Use of International Credit Rating Agencies:**
* Para 125 is substituted.
* AIFIs can use ratings from CareEdge Global IFSC Limited (for IFSC exposures), Fitch, Moody's, and Standard & Poor's for risk weighting claims for capital adequacy.
**Impact Analysis**
**All India Financial Institutions (AIFIs)**
* **Impact:** AIFIs must adopt the revised risk weighting norms for claims on non-resident corporates, impacting their capital adequacy calculations.
* **Action Required:** Update internal risk assessment models to reflect the new risk weight mappings and ensure compliance with the amended directions.
Key Entities Referenced
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The main policy being amended, concerning prudential norms on capital adequacy for All India Financial Institutions.
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Directions, 2025: The original directions being amended by the 2026 amendment directions.
Reserve Bank of India Act, 1934: The act that grants the Reserve Bank of India its powers.
International Financial Services Centre (IFSC): A location where non-resident corporate claims are subject to specific risk weighting rules.
CareEdge Global IFSC Limited: An international rating agency whose ratings are considered for risk weighting claims on non-resident corporates originating at IFSC.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/191
DOR.STR.REC.392/21-01-002/2025-26 January 09, 2026
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms
on Capital Adequacy) Amendment Directions, 2026
Please refer to Reserve Bank of India (All India Financial Institutions (AIFIs)-
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 45L of the
Reserve Bank of India Act, 1934 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 44 shall be substituted by the following:
“44. 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 9.2 below.
Table 9.1: Claims on non-resident corporates - risk weight mapping for
the ratings assigned by S&P/Fitch/Moody’s Ratings
S&P / Fitch
AAA to AA A BBB to BB Below BB Unrated
Ratings
Moody’s ratings Aaa to Aa A Baa to Ba Below Ba Unrated
Risk Weight (%) 20 50 100 150 100
विवियमि विभाग, केंद्रीय कायाालय, केंद्रीय कायाालय भिि, 12िी/ीं 13िी ींमींव़िल, शहीद भगत व ींह मागा, फोर्ा, म ींबई - 400001
र्ेलीफोि/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
हहदिं ी आसान ह,ैं इसका प्रयोग बड़ाइएTable 9.2: 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)
CareEdge
BB &
Global IFSC AAA AA A BBB
below
Limited
Risk Weight (%) 20 30 50 100 150
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 125 shall be substituted by the following:
“125. An AIFI 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
2