meta_id 3019756

On March 30, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026 (Revised), under reference RBI/2025-26/256. This amendment modifies the prudential framework governing capital adequacy requirements for commercial banks operating in India. The revised directions amend paragraph 84(6) in Chapter IV (Risk Weighted Assets) of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025. The amendment specifically addresses the treatment of irrevocable payment commitments issued by banks to clearing corporations of stock exchanges on behalf of clients. These commitments are classified as financial guarantees with a credit conversion factor of 100 percent. However, capital requirements apply only to the exposure classified as capital market exposure in accordance with the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025. Capital must be maintained on the amount counted as capital market exposure, with a risk weight of 125 percent applied to this exposure. This amendment was issued consequent to the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised), also dated March 30, 2026. The revised amendment comes into force from the date a bank decides to implement the Credit Facilities Amendment Directions, 2026 (Revised) or from July 1, 2026, whichever is earlier. It supersedes the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026 dated February 13, 2026. Commercial banks in India must ensure compliance with the revised capital adequacy framework within the specified implementation timeline.