**Executive Summary**
This document contains Amendment Directions issued by the Reserve Bank of India (RBI) on January 09, 2026, regarding prudential norms on capital adequacy for All India Financial Institutions (AIFIs). The Directions modify existing regulations concerning the risk weighting of claims on non-resident corporates. The amendment comes into force with immediate effect.
**Key Points / Main Content**
* **Amendment to Para 44:**
* Revises risk weighting for claims on non-resident corporates based on ratings from international rating agencies.
* Provides specific risk weight mapping for ratings assigned by M/s CareEdge Global IFSC Limited for claims originating at International Financial Services Centre (IFSC).
* Includes tables (9.1 and 9.2) detailing risk weights for different rating categories from S&P/Fitch/Moody's and CareEdge Global IFSC Limited.
* **Risk Weight Table Details:**
* **S&P/Fitch/Moody's:** Risk weights range from 20% (AAA to AA/Aaa to Aa) to 150% (Below BB/Below Ba), with Unrated at 100%.
* **CareEdge Global IFSC Limited:** Risk weights range from 20% (AAA) to 150% (BB & below).
* **Explanation of Unrated Claims:**
* Unrated claims with aggregate exposure exceeding ₹200 crore attract a 150% risk weight.
* Previously rated claims with aggregate exposure exceeding ₹100 crore that become unrated also attract a 150% risk weight.
* Unrated claims cannot receive a risk weight preferential to that assigned to its sovereign of incorporation.
* **Amendment to Para 125:**
* An AIFI may use the ratings of CareEdge Global IFSC Limited (for all non-resident corporate exposures originating at International Financial Services Centre (IFSC)), Fitch, Moody's, and Standard & Poor's for risk weighting claims.
* **Effective Date:** The amendment comes into force with immediate effect.
**Impact Analysis**
**All India Financial Institutions (AIFIs)**
* **Impact:** AIFIs need to incorporate the revised risk weighting norms for claims on non-resident corporates into their capital adequacy calculations. They can now also use CareEdge Global IFSC Limited ratings in specific cases.
* **Action Required:** Update internal risk assessment models and capital adequacy calculations to reflect the new risk weights and rating agency inclusions. Ensure compliance with the immediate effective date.
Key Entities Referenced
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Directions, 2025: The original RBI directions being amended by this document.
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The main subject of this document; amendment directions regarding capital adequacy norms for AIFIs.
Section 45L of the Reserve Bank of India Act, 1934: The section of the RBI Act that empowers the RBI to issue the directions.
International Financial Services Centre (IFSC): Location relevant because it affects the applicability of parts of the policy, specifically the claims originating at IFSC.
CareEdge Global IFSC Limited: Credit rating agency whose ratings are used 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
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