The Reserve Bank of India issues the Second Amendment Directions, 2026, for the Commercial Banks – Concentration Risk Management, subsequent to proposed amendments in the draft Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026. In Chapter V - Exposure Norms, paragraph 94 shall be deleted. New paragraphs 94A and 94B will be added, specifying that banks shall fix internal limits for aggregate exposure to the real estate sector. Within CRE exposures, aggregate exposure to real estate investment trusts (REITs) shall not exceed 10% of a lending bank's eligible capital base. These directions will be effective from July 1, 2026, or earlier if adopted entirely. For more information contact 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: Primary subject; Amendment directions concerning concentration risk management for commercial banks.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025: Original directions that the 2026 amendment modifies.
Banking Regulation Act, 1949: Act providing the legal basis for the Reserve Bank of India's powers.
Reserve Bank of India: The issuing regulator.
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