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RBI defers final CCB tranche to April 2021

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2020-21/42 · issued 29 Sep 2020 · ~1 min read

Quick answerRBI has postponed the last 0.625% Capital Conservation Buffer (CCB) implementation from September 30, 2020 to April 1, 2021, keeping the trigger for Additional Tier 1 instruments at 5.5% of RWAs until then.

What changed

The final 0.625% tranche of the CCB, originally due on September 30, 2020, is now deferred to April 1, 2021. The pre-specified trigger for loss absorption via conversion/write-down of Additional Tier 1 instruments remains at 5.5% of RWAs until April 1, 2021, when it will rise to 6.125%.

What it means for you

Banks get additional time to build capital buffers amid COVID-19 stress, easing immediate pressure on capital ratios. The deferral allows lenders to conserve capital for provisioning and lending without triggering automatic restrictions on distributions.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Update internal capital planning models to reflect CCB implementation date of April 1, 2021.
Communicate the revised CCB timeline to board and risk committees.
Monitor capital conservation ratios as per existing framework until CCB reaches 2.5%.
Prepare for the AT1 trigger increase to 6.125% of RWAs from April 1, 2021.

Who it affects

All commercial banks (excluding SFBs, payment banks, RRBs, and LABs), Bank treasury and capital management teams, Risk and compliance departments

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 09:06 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new deadline for the final CCB tranche?

The last 0.625% tranche of the CCB is now due on April 1, 2021, instead of September 30, 2020.

Does this change affect the AT1 trigger for loss absorption?

Yes, the trigger remains at 5.5% of RWAs until April 1, 2021, after which it will increase to 6.125%.

Which banks are covered by this circular?

All commercial banks except Small Finance Banks, Payment Banks, Regional Rural Banks, and Local Area Banks.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #342: DOR.BP.BC.No.15/21.06.201/2020-21 — "Basel III Capital Regulations - Review of Transitional Arrangements" dated September 29, 2020”

📜 Read the original circular — full text as issued by RBI

RBI/2020-21/42
DOR.BP.BC.No15/21.06.201/2020-21
 September 29, 2020
 All Commercial Banks
 (Excluding Small Finance Banks, Payment Banks, RRBs and LABs)
 Dear Sir/Madam,
 Basel III Capital Regulations - Review of transitional arrangements
 Please refer to circular DOR.BP.BC.No.45/21.06.201/2019-20 dated March 27, 2020 on ‘Basel III Capital Regulations - Review of transitional arrangements’.
 2. In view of the continuing stress on account of COVID-19, it has been decided to defer the implementation of the last tranche of 0.625 per cent of the Capital Conservation Buffer (CCB) from September 30, 2020 to April 1, 2021. Accordingly, the minimum capital conservation ratios in para 15.2.2 of Part D ‘Capital Conservation Buffer Framework’ of Master Circular, DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on ‘Basel III Capital Regulations’, shall continue to apply till the CCB attains the level of 2.5 per cent on April 1, 2021.
 3. The pre-specified trigger for loss absorption through conversion / write-down of Additional Tier 1 instruments (Perpetual Non-Convertible Preference Shares and Perpetual Debt Instruments), shall remain at 5.5 per cent of risk weighted assets (RWAs) and will rise to 6.125 per cent of RWAs from April 1, 2021.
 Yours faithfully
 (Usha Janakiraman)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/42 · issued 29 Sep 2020. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11970&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.