The Reserve Bank of India issues the Second Amendment Directions, 2026, regarding Concentration Risk Management for Commercial Banks. These directions modify the existing Directions of 2025. Paragraph 94 of 'Chapter V - Exposure Norms' is deleted, and new paragraphs 94A and 94B are inserted. 94A requires banks to fix internal limits for aggregate exposure to the real estate sector. 94B states that aggregate exposure to REITs shall not exceed 10% of a lending bank's eligible capital base. The directions come into force on July 1, 2026, or earlier if adopted by a bank in entirety. For reference, see the draft Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026. Vaibhav Chaturvedi, Chief General Manager, is the contact person. RBI/2025-26/<> DOR.CRE.REC. /07-03-001/2025-26 refers.
Key Entities Referenced
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025: Principal directions being amended.
Reserve Bank of India: The primary regulator and issuer of the directions.
Banking Regulation Act, 1949: Law providing the powers for issuing directions.
Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026: Amended directions relating to Credit Facilities.
भारतीय �रज़वर् 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