The Reserve Bank of India has issued the Reserve Bank of India (Mortgage Guarantee Companies) Amendment Directions, 2026, effective immediately, amending the Reserve Bank of India (Mortgage Guarantee Companies) Directions, 2025. The amendment clarifies the components included in the computation of “Owned Fund”, allowing free reserves to include quarterly profits, subject to quarterly financial statements being subjected to limited review/audit by statutory auditors and adjustment for the average dividend paid during the last three financial years using the prescribed formula. It also mandates that losses in the current financial year be fully deducted from Owned Fund and clarifies that Right-of-Use (ROU) assets created under Ind AS 116 – Leases need not be deducted where the underlying leased asset is tangible. Additionally, the amendment introduces provisions stating that Tier 1 Capital for compliance with credit and investment concentration norms shall be determined based on the latest available financial statements (audited or subject to limited review), as defined in the Master Directions.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13315&Mode=0
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