The Reserve Bank of India (RBI) has issued the Commercial Banks, Small Finance Banks and All India Financial Institutions (Prudential Norms on Capital Adequacy) Amendment Directions, 2026 under Section 35A of the Banking Regulation Act, 1949, which shall come into force with immediate effect. The amendments revise the risk weight framework for claims on non-resident corporates and formally recognise M/s CareEdge Global IFSC Limited as an eligible international credit rating agency for non-resident corporate exposures originating at International Financial Services Centres (IFSC).
Under the amended framework, risk weights for non-resident corporate exposures shall be determined based on ratings assigned by recognised international credit rating agencies, with a separate risk weight mapping prescribed for CareEdge Global IFSC Limited ratings for IFSC-originated claims. The amendments further provide that unrated exposures with aggregate banking system exposure exceeding ₹200 crore, and exposures exceeding ₹100 crore which were earlier rated but have subsequently become unrated, shall attract a higher risk weight of 150 per cent, subject to a sovereign floor for unrated corporates.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13265&Mode=0
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13266&Mode=0
link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13267&Mode=0
