The Reserve Bank of India (RBI) on January 09, 2026, notified the Reserve Bank of India (Small Finance Banks- Prudential Norms on Capital Adequacy) Amendment Directions, 2026 to amend the Reserve Bank of India (Small Finance Banks- Prudential Norms on Capital Adequacy) Directions, 2025.
The following has been stated: -
•The RBI has amended the Capital Adequacy Directions, 2025 for Small Finance Banks under Section 35A of the Banking Regulation Act, 1949.
•Revised norms prescribe updated risk-weight mappings for claims on non-resident corporates based on ratings by S&P, Fitch, Moody’s, and CareEdge Global IFSC Limited for IFSC-origin exposures.
•Unrated or downgraded large exposures will attract higher risk weights of up to 150%, with no preferential treatment over sovereign risk.
•The amendment also updates the list of recognised international rating agencies and comes into force with immediate effect.
The detailed notification is given in the document below.
[Notification No.: RBI/2025-26/190 DOR.STR.REC.391/21-01-002/2025-26]
