RegAlert2026-10-07
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Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
The document amends paragraph 52(5)(i) of the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025, by replacing sub-paragraph (a). It mandates a 2 per cent risk weight for a bank’s trade exposure to a Qualified Central Counterparty (QCCP) for OTC derivatives, exchange traded derivatives, and Securities Financing Transactions (SFTs). This 2 per cent risk weight also applies to trade exposure arising from obligations to reimburse clients for losses if the QCCP defaults. These Amendment Directions come into effect from the date of issue.
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( 225 kb ) Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
RBI/2026-27/288 DOR.MRG.REC.No.244/00-00-001/2026-27
October 7, 2026
Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Please refer to paragraph 52(5) (i) of the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025 , on the requirement for clearing member banks to obtain legal opinion. On a review, it has been decided to amend these Directions to align them with international standards.
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Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other provisions / laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
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(i) These instructions shall be called the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from the date of issue.
- The Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025 , are amended as provided below.
4.1 In paragraph 52(5)(i), sub-paragraph (a) shall be replaced by the following, namely: –
“(a) Where a bank acts as a clearing member of a QCCP for its own purposes, a risk weight of 2 per cent shall be applied to the bank’s trade exposure to the QCCP in respect of OTC derivatives transactions, exchange traded derivatives transactions, and SFTs. Where the clearing member (bank) offers clearing services to clients, the 2 per cent risk weight also applies to the clearing member’s (bank) trade exposure to the QCCP that arises in cases where the clearing member (bank) is obligated to reimburse the client for any losses on such transactions in the event that the QCCP defaults.”.
(Sunil T S Nair) Chief General Manager
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Source: Reserve Bank of India — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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