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

RBI issues RBI (All India Financial Institutions (AIFIs) - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026

10-Mar-2026 | RBI/2025-26/241 DOR.MRG.REC.No.436/21-01-002/2025-26

RBI has issued the RBI (All India Financial Institutions (AIFIs) - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026. Key Highlights: 1. A note has been inserted in Para 77(1), which states that for the computation of capital requirement on a consolidated basis, a bank shall include CCR exposures of all entities required to be consolidated in terms of Section B 'Scope of application of capital adequacy framework' under Chapter II of these Directions. 2. Table 13 in Para 77(2) has been substituted, which states the Add-on factors for market-related off-balance sheet items. 3. Note (b) in Para 77(2) has been substituted, which states that for contracts that are structured to settle outstanding exposure following specified payment dates and where the terms are reset such that the market value of the contract is zero on these specified dates, the residual maturity shall be set equal to the time until the next reset date. However, in the case of interest rate contracts which have residual maturities of more than one year and meet the above criteria, the add-on factor shall be subject to a floor of 0.50 per cent. 4. Notes (e),(f) and (g) have been inserted after note (d) in Para 77(2). 5. Para 77(6)(i)(a) has been substituted. Kindly refer to the attached document for more information.

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