Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026
RBI notification RBI/2026-27/110 · 10 Jun 2026
RBI notification RBI/2026-27/110 · 10 Jun 2026
Summary
Check the official recordThe Reserve Bank of India amends the Commercial Banks – Concentration Risk Management Directions, 2025. The bank deletes paragraph 94 from Chapter V. The bank inserts paragraph 94A. This paragraph requires banks to fix internal limits for aggregate exposure to the real estate sector. Banks must also fix sub-limits for real estate sub-categories based on their business model. The bank sets a prudential ceiling for aggregate exposure to real estate investment trusts. This ceiling is 10 per cent of the eligible capital base of the bank. These directions take effect on October 1, 2026. A bank may adopt these directions earlier if it adopts the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 in entirety.
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RBI/2026-27/110 DOR.CRE.REC.90/07.03.001/2026-27 June 10, 2026
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025 (hereinafter referred to as ‘Directions’).
Consequent to the amendments proposed in the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026, and in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank of India, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Directions hereinafter specified.
These Amendment Directions shall modify the Directions as under:
3(1) In ‘Chapter V - Exposure Norms’ of the Directions, paragraph 94 shall be deleted.
3(2) The following new paragraphs shall be inserted, namely:
“94A. A bank shall fix internal limits for its aggregate exposure to real estate sector, as also sub-limits for various sub-categories of real estate exposures in accordance with its business model.
Provided that the sub-limit for a bank’s aggregate exposure towards real estate investment trusts (REITs) shall be subject to a prudential ceiling of 10 per cent of the bank’s eligible capital base.”
(Vaibhav Chaturvedi)
Chief General Manager