RBI notification RBI/2026-27/288 · 07 Oct 2026
Official title
Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Summary
Check the official recordThe Reserve Bank of India amends the capital adequacy norms for payments banks regarding trade exposures to a Qualified Central Counterparty. Banks apply a 2 per cent risk weight to trade exposures from OTC derivatives, exchange traded derivatives, and securities financing transactions. This requirement applies when a bank acts as a clearing member for its own purposes. It also applies when a bank provides clearing services to clients and holds an obligation to reimburse the client for losses if the QCCP defaults. These directions take effect immediately.
What you must do
Key dates
Who is affected
Thresholds
RBI/2026-27/288 DOR.MRG.REC.No.244/00-00-001/2026-27
October 7, 2026
Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
Please refer to paragraph 52(5) (i) of the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025, on the requirement for clearing member banks to obtain legal opinion. On a review, it has been decided to amend these Directions to align them with international standards.
4.1 In paragraph 52(5)(i), sub-paragraph (a) shall be replaced 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.”.
(Sunil T S Nair)
Chief General Manager
