meta_id 3106194

On April 27, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks - Concentration Risk Management) - Second Amendment Directions, 2026. The amendment modifies the existing Concentration Risk Management Directions, 2025, issued under Section 35A of the Banking Regulation Act, 1949. The amendment updates the Explanation to paragraph 131 of the Concentration Risk Management Directions, 2025. It specifies that banks must refer to country risk classifications as published by the Export Credit Guarantee Corporation of India Limited (ECGC), as amended from time to time, when assessing concentration risk. This change aligns with the issuance of the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026, ensuring consistency across the RBI's regulatory framework for commercial banks. The amendment applies to all commercial banks operating in India and affects how these institutions classify and manage country-related concentration risk in their portfolios. The modification ensures that banks utilise the most current ECGC country risk classifications when determining their exposure concentrations. The amendment becomes effective on April 1, 2027, providing banks with a transition period to align their risk management procedures and systems with the updated requirements. **Reference:** Reserve Bank of India. (April 27, 2026). Reserve Bank of India (Commercial Banks - Concentration Risk Management) - Second Amendment Directions, 2026. RBI/2026-27/27 DOR.STR.REC.08/07-03-001/2026-27.