What changed
RBI replaced the previous Master Circular dated April 1, 2024, with a new consolidated version as of April 1, 2025. The new circular incorporates all relevant prudential guidelines on Basel III capital adequacy issued up to the date of this circular. A list of consolidated circulars is provided in Annex 26.
What it means for you
Banks must align their capital adequacy frameworks with the updated Basel III guidelines as captured in this Master Circular. This ensures consistency in regulatory capital treatment across all applicable banks. Small Finance Banks and Payments Banks should continue to follow their separate licensing and operating guidelines for capital adequacy.
What you must do
- Review the updated Master Circular and Annex 26 to identify any changes from the previous version.
- Update internal capital adequacy policies and procedures to reflect the consolidated guidelines.
- Ensure compliance with the new circular from April 1, 2025, and adjust reporting accordingly.
- Train relevant risk and compliance teams on the updated requirements.
Who it affects
All Scheduled Commercial Banks (excluding Small Finance Banks, Payments Banks, and Regional Rural Banks), Risk management and compliance departments, Capital planning and treasury teams
Does this Master Circular apply to Small Finance Banks?
No, Small Finance Banks and Payments Banks should refer to their respective licensing and operating guidelines for prudential guidelines on capital adequacy.
What is the effective date of this Master Circular?
The circular is dated April 1, 2025, and replaces the previous Master Circular of April 1, 2024.
Where can I find the list of circulars consolidated in this Master Circular?
The list of consolidated circulars is provided in Annex 26 of the Master Circular.