The Reserve Bank of India (Basel III Capital Regulations – Perpetual Debt Instruments (PDI) in Additional Tier 1 Capital – Eligible Limit for Instruments Denominated in Foreign Currency/Rupee Denominated Bonds Overseas) Directions, 2025, effective from October 1, 2025, revises the eligible limit for such instruments. PDIs issued in foreign currency/rupee denominated bonds overseas will now qualify for inclusion in Additional Tier 1 (AT1) capital up to 1.5% of Risk Weighted Assets (RWAs), replacing the earlier 2021 circular which had set a higher cap.
Applicable to – All Scheduled Commercial Banks (Excluding Small Finance Banks, Payments Banks and Regional Rural Banks), All Small Finance Banks and All Payments Banks
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/86NOT29092025E3A18B8B41BB42B395FC91E78FD5EB06.PDF
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI_8794BAC769F40E43098C94C8B04B67622A.PDF
