Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026 · RBI/2026-27/111
RBI notification RBI/2026-27/111 · 10 Jun 2026
RBI notification RBI/2026-27/111 · 10 Jun 2026
Summary
Check the official recordThe Reserve Bank of India amends the prudential norms for capital adequacy. Banks must treat exposures to Real Estate Investment Trusts (REITs) as Commercial Real Estate exposures. These exposures attract a risk weight of 100 percent. If these exposures qualify as capital market exposures, the risk weight is 125 percent. Overseas branches of Indian banks must apply a risk weight of 150 percent for lending to REITs. These directions take effect on October 1, 2026. Banks may adopt these rules earlier if they implement the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions, 2026 in full.
What you must do
Key dates
Who is affected
RBI/2026-27/111 DOR.CRE.REC.91/21-01-002/2026-27 June 10, 2026
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eighth Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘Directions’).
On a review, Consequent to the issuance of 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 Amendment Directions hereinafter specified.
The Amendment Directions insert paragraph 61A in Chapter IV- ‘Risk Weighted Assets (RWAs)’ of the Directions, as under:
“61A. Exposures to Real Estate Investment Trusts (REITs) shall be treated as Commercial Real Estate (CRE) exposures and shall attract a risk weight of 100 per cent. However, if such exposures qualify as capital market exposures in terms of paragraph 95A of the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025, the applicable risk weight shall be 125 per cent.
61B. Lending to REITs undertaken by overseas branches of an Indian bank shall attract a risk weight of 150 per cent.”
(Vaibhav Chaturvedi) Chief General Manager