The Reserve Bank of India (RBI) has issued Second Amendment Directions, 2026 for comments related to Concentration Risk Management for Commercial Banks. These directions modify the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025. Under 'Chapter V - Exposure Norms', paragraph 94 will be deleted, and new paragraphs will be added. Specifically, banks must fix internal limits for aggregate exposure to the real estate sector. Within the prudential ceiling for CRE exposures, a bank's aggregate exposure to real estate investment trusts (REITs) cannot exceed 10% of the lending bank's eligible capital base. These directions will take effect from July 1, 2026, or earlier if adopted in entirety. The document is signed by Vaibhav Chaturvedi, Chief General Manager. The reference number is RBI/2025-26/<> DOR.CRE.REC. /07-03-001/2025-26.
Key Entities Referenced
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Second Amendment Directions, 2026: The primary subject of the document, outlining amendments to directions regarding concentration risk management in commercial banks.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025: The original directions being amended by the Second Amendment Directions, 2026.
Banking Regulation Act, 1949: The act that empowers the Reserve Bank of India to issue the directions.
Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026: A similar direction related to credit facilities that may be adopted by banks in entirety.
Reserve Bank of India: The regulator issuing the directions.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/<>
DOR.CRE.REC. /07-03-001/2025-26 DD-MM-YYYY
Reserve Bank of India (Commercial Banks – Concentration Risk Management)
Second Amendment Directions, 2026 – Draft for Comments
Please refer to the Reserve Bank of India (Commercial Banks – Concentration Risk
Management) Directions, 2025 (hereinafter referred to as ‘Directions’).
2. Consequent to the amendments proposed in the draft Reserve Bank of India
(Commercial Banks – Credit Facilities) Second Amendment Directions, 2026, in
exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation
Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this
regard, the Reserve Bank of India, being satisfied that it is necessary and expedient
in public interest so to do , hereby, issues the Directions hereinafter specified.
3. These Amendment Directions shall modify the Directions as under:
3(1) In ‘Chapter V - Exposure Norms’ of the Directions, paragraph 94 shall be deleted.
3(2) The following new paragraphs shall be inserted, namely:
“94A. A bank shall fix internal limits for its aggregate exposure to real estate
sector, including the sub-categories of real estate exposures.
94B. Within the prudential ceiling for CRE exposures, aggregate exposure of a
bank towards real estate investment trusts (REITs) shall not exceed 10 per cent
of a lending bank’s eligible capital base.”
4. These Directions shall come into force from July 1, 2026, or an earlier date if the
directions contained in the Reserve Bank of India (Commercial Banks – Credit
Facilities) Second Amendment Directions, 2026 are adopted by a bank in entirety.
(Vaibhav Chaturvedi)
Chief General Manager