RBI Update - Reserve Bank of India (Basel III Capital Regulations - Perpetual Debt Instruments (PDI) in Additional Tier 1 Capital – Eligible Limit for Instruments Denominated in Foreign Currency/Rupee Denominated Bonds Overseas) Directions, 2025

The Reserve Bank of India (Basel III Capital Regulations - Perpetual Debt Instruments (PDI) in Additional Tier 1 Capital – Eligible Limit for Instruments Denominated in Foreign Currency/Rupee Denominated Bonds Overseas) Directions, 2025 , effective from October 1, 2025, revises the eligible limit for such instruments. PDIs issued in foreign currency/rupee denominated bonds overseas will now qualify for inclusion in Additional Tier 1 (AT1) capital up to 1.5% of Risk Weighted Assets (RWAs) , replacing the earlier 2021 circular which had set a higher cap. Applicable to - All Scheduled Commercial Banks (Excluding Small Finance Banks, Payments Banks and Regional Rural Banks), All Small Finance Banks and All Payments Banks

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