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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Amendment Directions on inclusion of quarterly profits in CET1 capital for CRAR computation for banks.

08-May-2026 | 2026-2027/227

Reserve Bank of India issues Amendment Directions on review of guidelines for inclusion of quarterly profits in CET1 capital for CRAR computation.

The Reserve Bank of India had, on April 08, 2026, issued draft Amendment Directions seeking stakeholder feedback on review of guidelines for inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital for computation of Capital to Risk Weighted Assets Ratio (CRAR) for banks. The draft proposed removal of the existing condition relating to incremental provisions for non-performing assets (NPAs) for quarterly profit recognition.

At present, Commercial Banks (excluding Local Area Banks and Regional Rural Banks) may include quarterly profits in CET1 capital for CRAR computation subject to specified NPA provisioning conditions.

After examination of stakeholder feedback, the Reserve Bank has finalised the Amendment Directions, along with a statement on comments received, as provided in the Annex.

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