**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Second Amendment Directions, 2026, regarding Prudential Norms on Capital Adequacy for Commercial Banks. The amendment modifies paragraph 84(6) of the existing Directions concerning risk-weighted assets (RWAs). The amendment will come into effect when the bank decides to implement Credit Facilities Amendment Directions, 2026, or on April 1, 2026, whichever is earlier.
**Key Points / Main Content**
* **Amendment Overview:**
* The document amends paragraph 84(6) in 'Chapter IV - Risk weighted assets (RWAs)' of the "Prudential Norms on Capital Adequacy" Directions.
* **Financial Guarantee and Capital Maintenance:**
* The issue of irrevocable payment commitment by a bank to clearing corporations of stock exchanges on behalf of its client is a financial guarantee with a CCF of 100 percent.
* Capital must be maintained only on the exposure reckoned as capital market exposure (CME) in terms of the "Concentration Risk Management" Directions, 2025.
* Capital is to be maintained on the amount taken for CME, and the risk weight shall be 125 percent.
* **Effective Date:**
* The amendment takes effect from the date a bank decides to implement the Credit Facilities Amendment Directions, 2026, or from April 1, 2026, whichever is earlier.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Banks must adjust their capital adequacy calculations and risk management practices to align with the new directives regarding irrevocable payment commitments to clearing corporations. This includes maintaining capital against capital market exposures (CME) with a risk weight of 125 percent.
* **Action Required:** Banks need to review and implement the amendment in accordance with the "Credit Facilities" Amendment Directions, 2026, or by April 1, 2026, whichever comes first. They must also ensure capital is maintained appropriately.
Key Entities Referenced
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025: Directions providing prudential norms for capital adequacy of commercial banks, referenced in the amendment.
Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026: Amendment Directions related to credit facilities for commercial banks.
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026: The primary subject of the document, amending the 2025 Directions.
Banking Regulation Act, 1949: Act providing the Reserve Bank of India with powers to issue directions.
Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025: Directions related to concentration risk management for commercial banks.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/213
DOR.CRE.REC.404/21-01-002/2025-26 February 13, 2026
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital
Adequacy) Second 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, consequent to the issuance of the Reserve Bank of India
(Commercial Banks – Credit Facilities) Amendment Directions, 2026, and in exercise
of the powers conferred by the section 21 and 35A of the Banking Regulation Act,
1949 and all other laws enabling the Reserve Bank of India (hereinafter called 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 modify paragraph 84(6) in ‘Chapter IV - Risk
weighted assets (RWAs)’ of the Directions as under:
“Issue of irrevocable payment commitment by a bank to clearing corporations
of stock exchanges on behalf of its client is a financial guarantee with a CCF of
100 per cent. However, capital shall be maintained only on the exposure
reckoned as capital market exposure (CME) in terms of the Reserve Bank of
India (Commercial Banks - Concentration Risk Management) Directions, 2025.
Thus, capital is to be maintained on the amount taken for CME and the risk
weight shall be 125 per cent thereon.”
4. The above amendment shall come into force from the date a bank decides to
implement the provisions of the Reserve Bank of India (Commercial Banks – Credit
Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.
(Vaibhav Chaturvedi)
विवियमि विभाग, केंद्रीय कायाालय, केंद्रीय कायाालय भिि, 12िी/ीं 13िी ींमींव़िल, शहीद भगत व ींह मागा, फोर्ा, म ींबई - 400001
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Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
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