What changed
RBI issued the Sixth Amendment to the Commercial Banks – Prudential Norms on Capital Adequacy Directions, 2025, effective May 18, 2026. The amendment deletes sub-paragraph 21(i)(b) from the 2025 Directions. This change is linked to the earlier issuance of the Second Amendment Directions on Classification, Valuation, and Operation of Investment Portfolio.
What it means for you
Deleting sub-paragraph 21(i)(b) removes a provision from the Capital Adequacy Directions. The change is consequent to the Second Amendment Directions on Investment Portfolio. Banks should review the original Directions to understand the specific requirement removed and assess any impact on capital adequacy calculations.
What you must do
- Review the deleted sub-paragraph 21(i)(b) from the 2025 Directions to understand which capital adequacy provision no longer applies.
- Cross-reference with the Second Amendment Directions on Investment Portfolio to identify any new or modified requirements.
- Update internal capital adequacy policies, risk management systems, and regulatory reporting templates to reflect the deletion.
- Train relevant treasury and compliance teams on the revised capital adequacy framework.
- Monitor RBI's future circulars for any consequential amendments or clarifications.
Who it affects
All commercial banks in India, Treasury and investment portfolio teams, Risk management and compliance departments, Regulatory reporting teams
Why was sub-paragraph 21(i)(b) deleted?
The deletion is consequent to the issuance of the Second Amendment Directions on Classification, Valuation, and Operation of Investment Portfolio, 2026.
Does this amendment affect my bank's capital adequacy ratio (CAR)?
The impact depends on the content of the deleted sub-paragraph, which is not specified in the source. Banks should review the original Directions to assess any effect on risk-weighted assets and CAR.
When does this amendment take effect?
The amendment came into effect from the date of issue, May 18, 2026.