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Rule · RBI · 16 Jun 2026

Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026

capital

Paragraph 25A is inserted into the Directions to assign a zero percent risk weight to exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, up to 75% of the guaranteed portion where the settlement amount is expected within thirty days of invocation. Any remaining exposure under this scheme attracts a risk weight according to extant guidelines. These Amendment Directions come into force with immediate effect.

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( 395 kb ) Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026

RBI/2026-27/137 DOR.STR.REC.116/21-01-002/2026-27

June 16, 2026

Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026

Please refer to Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’).

  1. Please refer to circular Ref no. 0264/NCGTC/ECLGS5.0 dated May 08, 2026, issued by National Credit Guarantee Trustee Company (NCGTC) in respect of Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Government of India.

  2. In exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other 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.

  3. These Amendment Directions shall amend the Directions as specified below:

(1) Paragraph 25A shall be inserted as below:

“Exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 shall attract risk weight of zero percent to the extent of 75% of the guaranteed portion, i.e., to the extent of guaranteed portion wherein the settlement amount is expected to be received within thirty days from the date of invocation. The remaining exposure shall attract risk weight as per the extant guidelines”.

  1. The above amendment shall come into force with immediate effect.

(Vaibhav Chaturvedi) Chief General Manager

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35A of the Banking Regulation Act,1949Not in RegAlert35A of the Banking Regulation Act, 1949 — Not in RegAlertDirective of 2025Not in RegAlertDirective of 2025 — Not in RegAlertReserve Bank of India (SmallFinance Banks – Prudential No…2026-06-16 · this documentReserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 (2026-06-16)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
The links and the sentences they come from (2)
Amends
  • Directive of 2025Not in RegAlert

    “These Amendment Directions shall amend the Directions as specified below”

Issued under
  • 35A of the Banking Regulation Act, 1949Not in RegAlert

    “In exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949”

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