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RBI Amends Prudential Norms on Capital Adequacy for AIFIs

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Issued by RBI: 09 Jan 2026
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📄 Source: Reserve Bank of India · RBI/2025-26/191
Quick answerRBI issues Amendment Directions to modify risk weightage for claims on non-resident corporates, effective immediately.

What changed

What it means for you

The rule, in the simplest words
  • AIFIs must change how they calculate capital by using the credit scores (ratings) given by big international rating agencies for loans to companies that live outside India.
  • If the loan comes from the International Financial Services Centre (IFSC), they must use the ratings given by CareEdge Global IFSC Limited instead.
  • Any loan that has no rating and is bigger than ₹200 crore must be given a risk weight of 150%, meaning the bank must keep extra capital for it.
  • All AIFIs need to update their risk‑assessment models and capital‑adequacy numbers right away.
How it plays out — a real example

Ravi Kumar, senior credit risk officer at State Bank of India's AIFI division in Mumbai, checks a new loan request from a non‑resident company. He looks up the company's S&P rating and applies the corresponding risk weight. Later, he sees an unrated claim worth ₹250 crore and, following the new rule, assigns it a 150% risk weight, ensuring the bank holds the required extra capital. He feels confident that the updated process keeps the bank safe and compliant.

What you must do

Who it affects

All India Financial Institutions (AIFIs)

Regulatory timeline

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

What is the effective date of the Amendment Directions?

The Amendment Directions come into force with immediate effect.

Which international credit rating agencies' ratings can AIFIs use?

AIFIs can use ratings from CareEdge Global IFSC Limited, Fitch, Moody's, and Standard & Poor's.

📜 Read the original circular — full text as issued by RBI
RBI/2025-26/191 DOR.STR.REC.392/21-01-002/2025-26 January 09, 2026 Reserve Bank of India (All India Financial Institutions (AIFIs) - Prudential Norms on Capital Adequacy) Amendment Directions, 2026 Please refer to Reserve Bank of India (All India Financial Institutions (AIFIs) - Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’). 2. On a review, and in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 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. 3. The Amendment Directions modifies the Directions as under: (1) Para 44 shall be substituted by the following: “44. The claims on non-resident corporates shall be risk weighted as under as per the ratings assigned by international rating agencies. Further, with regard to claims on all non-resident corporates originating at International Financial Services Centre (IFSC) for which ratings are assigned by M/s CareEdge Global IFSC Limited, the mapping shall be as per Table 9.2 below. Table 9.1: Claims on non-resident corporates - risk weight mapping for the ratings assigned by S&P/Fitch/Moody’s Ratings
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/191 · issued 09 Jan 2026. The plain-English explanation above is BankPulse’s own independent summary.

Test yourself

Quick self-check built only from the facts already on this page — tap a question to reveal the answer.

Q1. In one line, what does this circular do?

RBI issues Amendment Directions to modify risk weightage for claims on non-resident corporates, effective immediately.

Q2. Who does this circular apply to?

All India Financial Institutions (AIFIs)

Q3. What is the first thing you should do about it?

Update risk assessment and capital adequacy calculations (AIFIs only).

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Who does what — compliance checklist
💻 IT / Systems
  • Update risk assessment and capital adequacy calculations (AIFIs only).
📜 Compliance
  • Use specified international credit rating agencies' ratings for risk weighting claims.
  • Apply risk weight of 150% to unrated claims with aggregate exposure above ₹200 crore.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All India Financial Institutions (AIFIs)), your first concrete step on “RBI Amends Prudential Norms on Capital Adequacy for AIFIs” is: “Update risk assessment and capital adequacy calculations (AIFIs only).” (RBI issued this 09 Jan 2026).

  1. Circular: RBI/2025-26/191 -- RBI Amends Prudential Norms on Capital Adequacy for AIFIs
  2. Issued: 09 Jan 2026
  3. Action required: Update risk assessment and capital adequacy calculations (AIFIs only).
  4. Action required: Use specified international credit rating agencies' ratings for risk weighting claims.
  5. Action required: Apply risk weight of 150% to unrated claims with aggregate exposure above ₹200 crore.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 06 Jul 2026, 13:53 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13267&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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