RegAlert2026-10-07
Added
Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026
The Reserve Bank of India amends paragraph 75(5)(i) of the 2025 Directions to align clearing member requirements with international standards. A 2 per cent risk weight is applied to a bank’s trade exposure to a Qualified Central Counterparty (QCCP) for OTC derivatives, exchange traded derivatives, and Securities Financing Transactions (SFTs). This risk weight also applies to exposure arising from obligations to reimburse clients for losses if the QCCP defaults. These Amendment Directions come into effect from the date of issue.
RBI published 39 documents in the last 30 days — get each new one by email the day it lands.
Search the Website
( 226 kb ) Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026
RBI/2026-27/287 DOR.MRG.REC.No.243/00-00-001/2026-27
October 7, 2026
Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026
Please refer to paragraph 75(5) (i) of the Reserve Bank of India (Small Finance 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.
-
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.
-
(i) These instructions shall be called the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from the date of issue.
- The Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025 , are amended as provided below.
4.1 In paragraph 75(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
2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Archives
Top
Back to previous page
Read the rest free
Lineage: In force
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
More like this from RBI
RBI published 39 documents in the last 30 days. We email you each new one the day it's published.