meta_id 3115048

On April 29, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Credit Risk Management) Third Amendment Directions, 2026 (RBI/2026-27/47). The amendment modifies the existing credit risk management framework for commercial banks operating in India. The key amendment introduces a new Paragraph 12A to the Directions, which requires commercial banks to incorporate an assessment of potential calamity impacts into their credit evaluation processes. Specifically, banks must factor in the possible impact of calamities on borrowers who may be affected by such events when conducting credit assessments. This addition reflects the RBI's recognition that climate-related and other calamity risks represent material considerations in credit risk management and borrower creditworthiness evaluation. The amendment is issued under the authority of sections 21 and 35A of the Banking Regulation Act, 1949, and applies to all commercial banks subject to RBI regulation. The RBI determined that this amendment is necessary and expedient in the public interest. The amendment comes into force with effect from July 1, 2026. Commercial banks must ensure their credit assessment methodologies and procedures are updated to comply with the new requirement by this effective date. **Reference:** Reserve Bank of India (Commercial Banks – Credit Risk Management) Third Amendment Directions, 2026, RBI/2026-27/47, April 29, 2026