**Executive Summary**
This document, issued by the Reserve Bank of India on February 13, 2026, provides the Second Amendment Directions, 2026, to the Prudential Norms on Capital Adequacy for Commercial Banks. These amendments relate to risk-weighted assets and capital market exposure. The amendment comes into effect 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.
**Key Points / Main Content**
* **Amendment to Risk-Weighted Assets (RWAs):**
* Modifies paragraph 84(6) in 'Chapter IV - Risk weighted assets (RWAs)' of the Directions.
* Addresses irrevocable payment commitments by banks to clearing corporations of stock exchanges.
* Capital shall be maintained only on the exposure reckoned as capital market exposure (CME).
* Capital is to be maintained on the amount taken for CME, and the risk weight shall be 125% thereon.
* **Effective Date:**
* The amendment comes 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:**
* Commercial banks must adhere to the modified regulations regarding risk-weighted assets, specifically concerning capital requirements for exposures related to irrevocable payment commitments to clearing corporations.
* **Action Required:**
* Commercial banks should assess the impact of the amendments on their capital adequacy.
* Commercial banks need to decide on an implementation date, either before or on April 1, 2026.
* Banks must adjust capital calculations and risk weightings for relevant exposures in accordance with the new provisions.
Key Entities Referenced
Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026: Amendment directions regarding credit facilities for commercial banks issued by RBI in 2026.
Reserve Bank of India: The central bank of India, issuing the amendment directions.
Banking Regulation Act, 1949: Indian law providing the framework for regulation of banking companies in India.
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025: Directions related to Capital Adequacy of commercial banks issued by RBI.
Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025: Directions related to the Concentration Risk Management of commercial banks issued by RBI.
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
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
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