Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
RBI notification RBI/2026-27/134 · 16 Jun 2026
RBI notification RBI/2026-27/134 · 16 Jun 2026
Summary
Check the official recordThe Reserve Bank of India amends the prudential norms for Urban Co-operative Banks. The amendment adds a provision for exposures under the Emergency Credit Line Guarantee Scheme 5.0. Banks assign a zero percent risk weight to 75 percent of the guaranteed portion of these exposures. This applies when the settlement amount is expected within thirty days from the date of invocation. Banks assign risk weights to the remaining exposure according to existing guidelines. These changes take effect immediately.
What you must do
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Who is affected
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RBI/2026-27/134 DOR.STR.REC.113/09-18-201/2026-27 June 16, 2026
Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
Please refer to Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’).
Please refer to circular Ref no. 0264/NCGTC/ECLGS5.0 dated May 08, 2026, issued by National Credit Guarantee Trustee Company (NCGTC) in respect of Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced by the Government of India.
In exercise of the powers conferred by the section 35A read with Section 56 of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
These Amendment Directions shall amend the Directions as specified below:
(1) Paragraph 17(6)A shall be inserted as below:
“Exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 shall attract risk weight of zero percent to the extent of 75% of the guaranteed portion, i.e., to the extent of guaranteed portion wherein the settlement amount is expected to be received within thirty days from the date of invocation. The remaining exposure shall attract risk weight as per the extant guidelines.”
(Vaibhav Chaturvedi) Chief General Manager