**Executive Summary**
This document, issued by the Reserve Bank of India on January 09, 2026, provides amendment directions to the "All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy Directions, 2025." The amendments pertain to the risk weighting of claims on non-resident corporates based on ratings assigned by international rating agencies, including CareEdge Global IFSC Limited for those originating at International Financial Services Centre (IFSC). The amendment came into force with immediate effect.
**Key Points / Main Content**
* **Risk Weighting for Non-Resident Corporates:**
* Para 44 of the original Directions is substituted.
* Claims on non-resident corporates shall be risk-weighted according to ratings assigned by international rating agencies.
* Claims originating at IFSC, rated by CareEdge Global IFSC Limited, will follow a specific risk weight mapping (Table 9.2).
* **Table 9.1: Risk Weight Mapping (S&P/Fitch/Moody's):**
* AAA to AA: 20%
* A: 50%
* BBB to BB: 100%
* Below BB: 150%
* Unrated: 100%
* **Table 9.2: Risk Weight Mapping (CareEdge Global IFSC Limited):**
* AAA: 20%
* AA: 30%
* A: 50%
* BBB: 100%
* BB & below: 150%
* **Explanation related to unrated claims:**
* Unrated claims with aggregate exposure > ₹200 crore attract a risk weight of 150%.
* Claims > ₹100 crore, previously rated but now unrated, attract a risk weight of 150%.
* Unrated claims cannot have a risk weight lower than that of the sovereign of incorporation.
* **International Credit Rating Agencies:**
* Para 125 of the original Directions is substituted.
* AIFIs may use ratings from the following agencies for risk weighting:
* CareEdge Global IFSC Limited (for IFSC exposures)
* Fitch
* Moody's
* Standard & Poor's
* **Effective Date:**
* The amendment is effective immediately.
**Impact Analysis**
**Stakeholder: All India Financial Institutions (AIFIs)**
* **Impact:** AIFIs need to revise their risk-weighting calculations for capital adequacy based on the amended directions. They must adhere to the new risk weight mapping for claims on non-resident corporates, especially those rated by CareEdge Global IFSC Limited for IFSC exposures.
* **Action Required:** Update internal risk assessment models and processes to reflect the new risk weights as specified in Tables 9.1 and 9.2. Ensure compliance with the immediate effective date.
Key Entities Referenced
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The primary subject of the document, outlining amendments to prudential norms for AIFIs regarding capital adequacy.
Reserve Bank of India (All India Financial Institutions (AIFIs)- Prudential Norms on Capital Adequacy) Directions, 2025: The original directions being amended by this document.
Reserve Bank of India Act, 1934: The legal basis authorizing the Reserve Bank of India to issue the amendment directions.
International Financial Services Centre (IFSC): A location specifying the applicability of certain ratings and risk weight mappings within the amendment directions.
CareEdge Global IFSC Limited: A credit rating agency whose ratings are used for risk weighting claims on non-resident corporates.
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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