What changed
RBI has revised the eligible limit for Perpetual Debt Instruments (PDI) denominated in foreign currency or rupee-denominated bonds overseas. The revised limit is 1.5% of Risk Weighted Assets (RWAs) as per the latest available financial statements.
What it means for you
This update affects banks' capital adequacy requirements and may impact their ability to issue PDI instruments. Banks must reassess their capital planning and ensure compliance with the revised limits.
What you must do
- Review and update capital planning to reflect the revised eligible limit for PDI instruments
- Ensure compliance with the revised limits by October 1, 2025
- Assess the impact on existing PDI instruments and adjust accordingly
Who it affects
All Payments Banks
What is the revised eligible limit for PDI instruments?
The revised limit is 1.5% of Risk Weighted Assets (RWAs) as per the latest available financial statements.
When does the revised limit come into effect?
The revised limit comes into effect on October 1, 2025.
What is the impact on existing PDI instruments?
Banks must assess the impact on existing PDI instruments and adjust accordingly to ensure compliance with the revised limits.