RBI/2025-26/240
DOR.MRG.REC.No.435/21-01-002/2025-26

March 10, 2026

Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026

Please refer to paragraph 52 on ‘Treatment of total Counterparty Credit Risk’ of the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025. It has been decided to amend these instructions to provide greater clarity and to largely align them with international standards.

2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (RBI) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. (i) These instructions shall be called the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026.

(ii) These Amendment Directions shall come into effect from the date of issue.

4. The Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025, are amended as provided below.

4.1. Table 10 in paragraph 52(2) shall be substituted by the following, namely: –

4.2. The following note shall be inserted after note (c) in paragraph 52(2), namely:–

“(d) Add-on factors as per Table 10 shall be applicable to all outstanding CCR exposures.”.

4.3. In paragraph 52(5)(i), sub-paragraph (a) shall be substituted by the following, namely: –

“(a) Where a bank acts as a clearing member of a QCCP for its own purposes, a risk weight of 2 per cent shall be applied to the bank’s trade exposure to the QCCP in respect of OTC derivatives transactions, exchange traded derivatives transactions, and SFTs. Where the clearing member (bank) offers clearing services to clients, the 2 per cent risk weight also applies to the clearing member’s (bank) trade exposure to the QCCP that arises in cases where the clearing member (bank) is obligated to reimburse the client for any losses on such transactions in the event that the QCCP defaults.

Provided that, a clearing member (bank) is not required to maintain capital for such transactions, for the trade exposure to the QCCP, if it is not obligated to reimburse the client for such losses, provided the bank obtains and maintains an independent, written, and reasoned legal opinion that it is protected from any such liability in case of QCCP defaults.”.

(Sunil T S Nair)
Chief General Manager