The Reserve Bank of India (RBI) on March 10, 2026, issued the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026, further to amend the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025.
The following has been stated:
• The amendment revises Table 10 in paragraph 52(2) by prescribing add-on factors for market-related off-balance sheet items such as exchange rate contracts and gold—1% for contracts up to one year, 5% for contracts between one and five years, and 7.5% for contracts exceeding five years. It also inserts a clarification that these add-on factors will apply to all outstanding CCR exposures.
• Further, paragraph 52(5)(i)(a) is amended to specify that banks acting as clearing members of a Qualifying Central Counterparty (QCCP) shall apply a 2% risk weight to their trade exposure in OTC derivatives, exchange-traded derivatives, and securities financing transactions, including client-clearing exposures where the bank is liable to reimburse clients in case of QCCP default.
• However, banks are exempt from maintaining capital for such exposure if they are not liable to reimburse clients and possess an independent legal opinion confirming protection from such liability.
• The amendment comes into force on March 10, 2026.
[Notification no. - RBI/2025-26/240 DOR.MRG.REC.No.435/21-01-002/2025-26]
