RBI Update - Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026

The Reserve Bank of India, through the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Ninth Amendment Directions, 2026, has amended the Capital Adequacy Directions, 2025, to provide regulatory capital relief for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. Pursuant to the amendment, a new Paragraph 34A has been inserted, stipulating that exposures guaranteed under ECLGS 5.0 shall attract a zero percent risk weight to the extent of 75% of the guaranteed portion, representing the portion of the claim amount expected to be settled within thirty days from the date of guarantee invocation. The balance exposure shall continue to attract risk weights in accordance with the existing prudential norms. This amendment, issued under Section 35A of the Banking Regulation Act, 1949, aligns with the Government-backed credit guarantee framework notified by NCGTC and is effective immediately.