The Reserve Bank of India (RBI) on March 25, 2025, issued the Master Direction – Reserve Bank of India (Prudential Norms on Capital Adequacy for Regional Rural Banks) Directions, 2025.
The following has been stated namely: -
• To enable RRBs to have current instructions at one place, a Master Direction incorporating all the existing guidelines/instructions/directives on the subject has been prepared for reference.
• These Directions shall apply to all Regional Rural Banks (RRBs)
• This Master Direction covers instructions regarding the capital required to be provided for by banks commensurate with their risks and the components thereof.
• The Directions serve to specify the prudential norms from the point of view of capital adequacy. Permission for RRBs to undertake transactions in specific instruments/products/ activities shall be guided by the regulations, instructions and guidelines on the same issued by Reserve Bank from time to time.
This shall come into force on April 01, 2025.
[Notification No. RBI/DOR/2024-25/129]
