Capital Adequacy: New Norms for Irrevocable Payment Commitments to Clearing Corporations
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2025-26/213 · issued 13 Feb 2026 · ~2 min read
Quick answerRBI now requires banks to hold capital at 125% risk weight on irrevocable payment commitments to stock exchange clearing corporations, treating them as capital market exposure with 100% CCF, effective from implementation of Credit Facilities Amendment or April 1, 2026.
What changed
RBI amended paragraph 84(6) of the Capital Adequacy Directions to specify that irrevocable payment commitments issued by banks to clearing corporations for clients are financial guarantees with a 100% credit conversion factor. Capital must now be maintained only on the amount treated as capital market exposure under the Concentration Risk Management Directions, with a risk weight of 125%.
What it means for you
Banks will need to allocate more capital for these commitments, as the 125% risk weight is higher than typical corporate exposures. This aligns capital treatment with the higher risk of capital market exposures, potentially increasing capital costs for banks offering such facilities to clients.
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
Review and update internal capital adequacy models to apply 125% risk weight on irrevocable payment commitments to clearing corporations.
Ensure compliance with the effective date: either the date of implementing Credit Facilities Amendment Directions or April 1, 2026, whichever is earlier.
Coordinate with treasury and risk teams to recalibrate exposure limits and capital planning for capital market exposures.
Communicate the revised capital treatment to relevant business units handling client clearing and settlement services.
Who it affects
Commercial banks issuing irrevocable payment commitments to clearing corporations, Risk management and capital planning teams, Treasury and wholesale banking divisions handling capital market exposures
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-17 17:01 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 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 effective date for this amendment?
The amendment applies from the date a bank decides to implement the Credit Facilities Amendment Directions, 2026, or from April 1, 2026, whichever is earlier.
Does this change apply to all types of payment commitments?
No, it specifically applies to irrevocable payment commitments issued by banks to clearing corporations of stock exchanges on behalf of clients.
How does this affect capital calculation for existing commitments?
Existing commitments must be re-evaluated under the new rules from the effective date, with capital maintained at 125% risk weight on the capital market exposure amount.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #3: DOR.CRE.REC.404/21-01-002/2025-26 — "Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026" dated Feb”
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/213
DOR.CRE.REC.404/21-01-002/2025-26
February 13, 2026
Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
Please refer to Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as 'the Directions ').
2. On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 , and in exercise of the powers conferred by the section 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called 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 modify paragraph 84(6) in 'Chapter IV - Risk weighted assets (RWAs)' of the Directions as under:
"Issue of irrevocable payment commitment by a bank to clearing corporations of stock exchanges on behalf of its client is a financial guarantee with a CCF of 100 per cent. However, capital shall be maintained only on the exposure reckoned as capital market exposure (CME) in terms of the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025 . Thus, capital is to be maintained on the amount taken for CME and the risk weight shall be 125 per cent thereon."
4. The above amendment shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.
(Vaibhav Chaturvedi)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/213 · issued 13 Feb 2026. 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=13295&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.
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