**Executive Summary**
The Reserve Bank of India (RBI) issued Amendment Directions in January 09, 2026, modifying the "Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Directions, 2025." These amendments address the risk weighting of claims on non-resident corporates based on ratings assigned by international rating agencies, including those originating from the International Financial Services Centre (IFSC). The changes came into effect immediately.
**Key Points / Main Content**
* **Modification of Para 49:**
* Para 49 is substituted to address the risk weighting of claims on non-resident corporates.
* Risk weights are based on ratings assigned by international rating agencies.
* For claims on non-resident corporates originating at IFSC, ratings assigned by M/s CareEdge Global IFSC Limited will be mapped as per Table 10.2.
* **Table 10.1:** Claims on non-resident corporates - risk weight mapping for the ratings assigned by S&P/Fitch/Moody's Ratings:
* AAA to AA: 20%
* A: 50%
* BBB to BB: 100%
* Below BB: 150%
* Unrated: 100%
* **Table 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):
* AAA: 20%
* AA: 30%
* A: 50%
* BBB: 100%
* BB & below: 150%
* **Explanation:**
* Unrated claims exceeding ₹200 crore attract a 150% risk weight.
* Claims exceeding ₹100 crore that were rated but became unrated attract a 150% risk weight.
* Unrated corporate claims cannot have a preferential risk weight lower than the sovereign's rating.
* **Modification of Para 132:**
* Para 132 is substituted, outlining the credit rating agencies for risk weighting claims for capital adequacy.
* Permissible agencies include: CareEdge Global IFSC Limited (for IFSC exposures), Fitch, Moody's, and Standard & Poor's.
* **Effective Date:**
* The amendment came into force with immediate effect.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Banks need to adjust their risk weighting calculations for claims on non-resident corporates according to the revised tables and parameters outlined in the amendment.
* **Action Required:** Update internal risk assessment models and capital adequacy calculations to reflect the new risk weights for non-resident corporate claims, particularly those related to IFSC exposures.
Key Entities Referenced
Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Directions, 2025: The principal document being amended by the current directions.
Banking Regulation Act, 1949: The act that empowers the Reserve Bank of India to issue these directions.
Reserve Bank of India: The primary regulator and issuer of the amendment directions.
International Financial Services Centre (IFSC): Location relevant to applicability of some provisions.
CareEdge Global IFSC Limited: Credit rating agency whose ratings are referenced in the policy.
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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