The Reserve Bank of India (RBI) on March 10, 2026, notified the Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Third 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 Reserve Bank of India issued the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026 under the Banking Regulation Act, 1949.
•The amendment revises provisions on Counterparty Credit Risk (CCR) to provide greater clarity and align them with international standards.
•It introduces updated add-on factors for market-related off-balance sheet exposures such as interest rate, exchange rate, equity, precious metals, and commodity contracts.
•The directions also clarify capital requirements for banks acting as clearing members of recognized stock exchanges and apply with immediate effect.
The detailed notification is given in the document below.
[Notification No.: RBI/2025-26/239 DOR.MRG.REC.No.434/21-01-002/2025-26]
