**Executive Summary**
The Reserve Bank of India (RBI) issues amendment directions effective immediately concerning the Prudential Norms on Capital Adequacy for Commercial Banks. These directions, dated January 09, 2026, modify the risk weighting of claims on non-resident corporates based on ratings from international rating agencies and CareEdge Global IFSC Limited, with specific mapping details provided in Tables 10.1 and 10.2. The directions are issued under Section 35A of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Amendment to Para 49:**
* Claims on non-resident corporates shall be risk weighted according to ratings assigned by international rating agencies.
* For claims on non-resident corporates originating at International Financial Services Centre (IFSC) and rated by M/s CareEdge Global IFSC Limited, risk weighting mapping is as per Table 10.2.
* **Risk Weight Mapping Tables:**
* Table 10.1 details risk weight mapping for ratings assigned by S&P/Fitch/Moody's Ratings to claims on non-resident corporates.
* AAA to AA: 20%
* A: 50%
* BBB to BB: 100%
* Below BB: 150%
* Unrated: 100%
* Table 10.2 details risk weight mapping for ratings assigned by M/s CareEdge Global IFSC Limited to claims on non-resident corporates originating at IFSC.
* AAA: 20%
* AA: 30%
* A: 50%
* BBB: 100%
* BB & below: 150%
* **Explanation of Risk Weighting for Unrated Claims:**
* Unrated claims with aggregate exposure from the banking system exceeding ₹200 crore attract a risk weight of 150%.
* Claims with aggregate exposure from the banking system exceeding ₹100 crore, initially rated but subsequently unrated, attract a risk weight of 150%.
* No claim on an unrated corporate shall be given a risk weight preferential to that assigned to its sovereign of incorporation.
* **Amendment to Para 132:**
* Banks may use ratings from specified international credit rating agencies (arranged alphabetically) for risk weighting claims for capital adequacy:
* CareEdge Global IFSC Limited (for non-resident corporate exposures originating at IFSC).
* Fitch.
* Moody's.
* Standard & Poor's.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Commercial banks need to adjust their capital adequacy calculations based on the revised risk weights for claims on non-resident corporates. They must also consider the specific ratings assigned by international rating agencies and CareEdge Global IFSC Limited for claims originating from IFSC.
* **Action Required:** Review and update internal risk management processes and capital adequacy calculations to reflect the changes specified in the amendment directions.
**Reserve Bank of India (RBI)**
* **Impact:** RBI has issued the amendment directions to ensure prudent capital adequacy norms are followed by commercial banks, maintaining financial stability.
* **Action Required:** Monitor the implementation of these directions by commercial banks and ensure compliance through regular supervision and reporting.
Key Entities Referenced
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Directions, 2025: The original policy being amended related to capital adequacy norms for commercial banks.
Banking Regulation Act, 1949: The Act under which the Reserve Bank derives its powers to regulate banks.
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Amendment Directions, 2026: Amendment directions issued by the Reserve Bank of India pertaining to prudential norms on capital adequacy for commercial banks.
CareEdge Global IFSC Limited: Credit rating agency whose ratings are considered for risk weighting claims on non-resident corporates originating at International Financial Services Centre.
International Financial Services Centre (IFSC): A jurisdiction where the rules for risk weighting of claims are modified by this document, especially regarding non-resident corporates.
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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