**Executive Summary**
The Reserve Bank of India (RBI) issued Amendment Directions on January 09, 2026, modifying the Prudential Norms on Capital Adequacy for Commercial Banks. These directions, effective immediately, revise the risk weighting of claims on non-resident corporates based on ratings from international rating agencies and CareEdge Global IFSC Limited. The document substitutes Para 49 and Para 132 of the original Directions.
**Key Points / Main Content**
* **Amendment of Para 49:**
* Claims on non-resident corporates are to be risk-weighted based on ratings from international rating agencies.
* Claims originating from International Financial Services Centre (IFSC) and rated by M/s CareEdge Global IFSC Limited will be mapped as per Table 10.2 (provided below).
* Provides the risk weight (%) for claims on non-resident corporates - risk weight mapping for the ratings assigned by S&P/Fitch/Moody's Ratings using the following table:
* Claims on non-resident corporates originating from International Financial Services Centre (IFSC) and rated by CareEdge Global IFSC Limited will be mapped as per Table 10.2 (provided below).
* Provides the risk weight (%) for claims on non-resident corporates - risk weight mapping for the ratings assigned by M/s CareEdge Global IFSC Limited - for claims originating at International Financial Services Centre (IFSC) using the following table:
* **Claims on non-resident corporates - risk weight mapping for the ratings assigned by S&P/Fitch/Moody's Ratings:**
|S&P / Fitch Ratings| Moody's ratings|Risk Weight (%)|
|---|---|---|
|AAA to AA|Aaa to Aa|20|
|A|A|50|
|BBB to BB|Baa to Ba|100|
|Below BB|Below Ba|150|
|Unrated|Unrated|100|
* **Claims on non-resident corporates - risk weight mapping for the ratings assigned by M/s CareEdge Global IFSC Limited - for claims originating at International Financial Services Centre (IFSC):**
|CareEdge Global IFSC Limited|Risk Weight (%)|
|---|---|
|AAA|20|
|AA|30|
|A|50|
|BBB|100|
|BB & below|150|
* Unrated claims with aggregate exposure from banking system of more than ₹200 crore shall attract a risk weight of 150 per cent.
* 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.
* No claim on an unrated corporate shall be given a risk weight preferential to that assigned to its sovereign of incorporation.
* **Amendment of Para 132:**
* Banks may use ratings from specified international credit rating agencies for risk weighting claims for capital adequacy.
* The agencies are: CareEdge Global IFSC Limited (for non-resident corporate exposures originating at International Financial Services Centre (IFSC)), Fitch, Moody's, and Standard & Poor's.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Commercial banks need to adhere to the revised risk weighting norms for non-resident corporate claims. This could potentially affect their capital adequacy ratios.
* **Action Required:** Banks need to update their risk assessment models and internal procedures to incorporate the new risk weights for calculating capital adequacy.
**International Financial Services Centre (IFSC)**
* **Impact:** Claims originating from IFSC are subject to a specific risk weighting based on ratings by CareEdge Global IFSC Limited.
* **Action Required:** Follow updated guidelines from the document to be in compliance with regulatory expectations.
**Reserve Bank of India (RBI)**
* **Impact:** The RBI is responsible for the oversight and enforcement of these amended directions.
* **Action Required:** Oversee and ensure the capital adequacy of banks based on these new provisions.
**CareEdge Global IFSC Limited**
* **Impact:** Ratings assigned by CareEdge Global IFSC Limited are now explicitly recognized for risk weighting claims on non-resident corporates originating at IFSC.
* **Action Required:** Ratings provided by CareEdge Global IFSC Limited must comply with standards set by the RBI.
Key Entities Referenced
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Directions, 2025: The primary directions being amended by this document, setting capital adequacy norms for commercial banks.
Banking Regulation Act, 1949: The Act providing the Reserve Bank of India the power to issue directions and regulations.
Reserve Bank of India: The regulatory body issuing the amendment directions.
CareEdge Global IFSC Limited: Credit rating agency whose ratings are used for risk weighting claims on non-resident corporates in IFSC.
International Financial Services Centre (IFSC): Location where non-resident corporates originate, influencing the applicability of the risk weight mappings.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/189
DOR.STR.REC.390/21-01-002/2025-26 January 09, 2026
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital
Adequacy) Amendment Directions, 2026
Please refer to Reserve Bank of India (Commercial Banks- 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 35A of the
Banking Regulation Act, 1949 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 49 shall be substituted by the following:
“49. 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 10.2 below.
Table 10.1: 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 10.2: 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 132 shall be substituted by the following:
“132. A bank 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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