meta_id 3019758

On March 30, 2026, the Reserve Bank of India (RBI) issued revised amendment directions to the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025. The revised directions follow the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) on the same date and are issued under sections 21 and 35A of the Banking Regulation Act, 1949. The amendment introduces comprehensive modifications to capital market exposure (CME) management for commercial banks. Key changes include new definitions for acquisition finance, bridge finance, capital market intermediaries, collateral security, non-debt mutual funds, and primary security, aligned with the Credit Facilities Directions. The revised directions establish a new paragraph 95A that expands the definition of CME to include direct and indirect exposures, encompassing investment exposures in equities, preference shares, convertible instruments, real estate investment trusts, and alternative investment funds, alongside credit exposures to individuals and capital market intermediaries. The directions establish prudential ceilings for CME: an aggregate CME limit of 40 percent of eligible capital base on solo and consolidated basis; a direct capital market exposure limit of 20 percent of eligible capital base; and an acquisition finance sub-limit of 20 percent of eligible capital base. The amendment also specifies exclusions from CME computation, including investments in own subsidiaries, critical financial infrastructure entities, and certain underwriting commitments. Annex II provides a comprehensive list of 22 critical financial infrastructure entities exempted from CME calculations, including the National Stock Exchange, Clearing Corporation of India Limited, and the National Payments Corporation of India. The revised amendments become effective from the date a bank implements the Credit Facilities Amendment Directions or July 1, 2026, whichever is earlier, superseding the previous amendment directions dated February 13, 2026.