**Executive Summary**
This document comprises the Reserve Bank of India's (RBI) Second Amendment Directions, 2026, regarding Prudential Norms on Capital Adequacy for Commercial Banks, issued on February 13, 2026. The directions modify the treatment of irrevocable payment commitments by banks to clearing corporations, setting risk weights. The amendment comes into effect from April 1, 2026, or the date when a bank decides to implement the provisions.
**Key Points / Main Content**
* **Modification of Directions:**
* Modifies paragraph 84(6) in ‘Chapter IV - Risk weighted assets (RWAs)' of the Directions.
* Addresses the treatment of irrevocable payment commitments by banks to clearing corporations for stock exchanges on behalf of their clients.
* **Treatment of Irrevocable Payment Commitments:**
* The commitment is considered a financial guarantee with a Credit Conversion Factor (CCF) of 100%.
* Capital is to be maintained only on the exposure reckoned as capital market exposure (CME) as defined by the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025.
* Capital must be maintained on the amount taken for CME, with a risk weight of 125%.
* **Effective Date:**
* The amendment will 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.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Affected by changes to capital adequacy norms regarding irrevocable payment commitments.
* **Action Required:** Review and implement the amendment provisions by April 1, 2026, or earlier if they choose to do so, ensuring compliance with the new risk weight requirements for CME.
**Clearing Corporations**
* **Impact:** Will see changes in how banks treat capital requirements for payment commitments made on behalf of clients.
* **Action Required:** Understand the implications of the new capital adequacy norms for member banks and potentially adjust operational strategies accordingly.
Key Entities Referenced
Reserve Bank of India: India's central bank, the issuer of these directions.
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025: Referenced document providing the original guidelines on capital adequacy for commercial banks.
Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026: Amendment directions related to credit facilities for commercial banks issued by RBI.
Banking Regulation Act, 1949: The act that confers powers on the Reserve Bank of India.
Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025: Referenced document providing the original guidelines on concentration risk management for commercial banks.
भारतीय �रज़वर् 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)
Chief General Manager
िविनयमन िवभाग, केंद्रीय कायार्लय, केंद्रीय कायार्लय भवन, 12वी/ं 13वी ंमंिज़ल, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फै�/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
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