The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2026, effective immediately, amending the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025 to enhance clarity on the treatment of Counterparty Credit Risk (CCR) and align the framework with international standards. The amendment revises the add-on factors for market-related off-balance sheet exposures relating to exchange rate contracts and gold, and clarifies that these add-on factors shall apply to all outstanding CCR exposures. It also modifies the risk-weight treatment for exposures to Qualified Central Counterparties (QCCPs), prescribing a 2% risk weight for trade exposures of clearing member banks, while allowing exemption from capital maintenance where the bank has an independent legal opinion confirming it is not obligated to reimburse clients in the event of a QCCP default.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13330&Mode=0
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