The Reserve Bank of India has issued the Reserve Bank of India (Standalone Primary Dealers) Amendment Directions, 2026, effective immediately, amending the Reserve Bank of India (Standalone Primary Dealers) Directions, 2025. The amendment revises the definition of Tier 1 capital, allowing paid-up capital, statutory reserves, and other disclosed free reserves including quarterly profits to be considered, 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 further clarifies that losses in the current year must be fully deducted from Tier 1 capital, along with deductions for investment in subsidiaries, intangible assets, deferred tax assets, and brought-forward losses. Additionally, the amendment specifies that Tier 1 capital for compliance with exposure norms shall be determined based on the SPD’s latest available financial statements (audited or subject to limited review).
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13317&Mode=0
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