Reserve Bank of India (Commercial Banks – Resource Raising Norms) Directions, 2025
UR
- Applies toCommercial banks
- StatusIn force
- IssuedNovember 28, 2025
- Amendmentsnone tracked
- Length28 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNovember 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNovember 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
1. Start date
These Directions took effect the day RBI placed them on its official website.
2. Who is covered
This rule applies to commercial banks, called 'banks' here.
3. Who is a commercial bank
Commercial bank here means banking companies, corresponding new banks and the State Bank of India.
Chapter II. Issue of Long-Term Bonds for Financing Infrastructure Sub-Sectors
Must know
1. Seven-year bond floor
A long-term bond raised for these purposes must run for at least seven years.
2. Seven year minimum
The bonds must have a minimum maturity period of seven years.
BankPulse example. A bank issues long term bonds to fund lending to infrastructure projects. The bonds must have a minimum maturity period of seven years. A five year bond does not qualify.
3. Non-SLR holding cap
A bank's total holding of these bonds cannot exceed 10% of its Non-SLR investments.
4. 20 percent bank-sale cap
No more than 20% of a bond issue's size can be sold to other banks.
5. No own-bond holding
A bank cannot hold its own bonds.
Do it
6. Fully paid and unsecured
The instrument must be fully paid, redeemable and unsecured.
7. Plain vanilla only
The bonds must be plain vanilla, with no embedded call or put option.
8. Floating rate benchmark
A floating rate bond must be referenced to a market determined benchmark.
9. Comply with all laws
A bank issuing long-term bonds must meet every relevant statutory and regulatory requirement.
10. FEMA compliance
A bank must follow FEMA rules wherever they apply.
Background
11. Incentives on infra bonds
Incentives on reserve and priority sector obligations apply to qualifying long-term bond issues.
12. Ranks with other creditors
The bonds rank equally with other uninsured and unsecured creditors.
13. No cap on quantum
There is no limit on how many such bonds a bank may issue.
14. Incentive only for infrastructure
The regulatory incentive covers only bonds funding fresh long-term infrastructure projects.
15. Bought loans need approval
Infrastructure and housing loans bought from others need prior Reserve Bank approval to count.
16. No deposit insurance
These long-term bonds are not eligible for deposit insurance.
17. Cross-holding caps
A bank's investment in another bank's bonds is capped at 2% of its Tier 1 Capital or 5% of issue size.
Chapter III. Repeal and Other Provisions
Must know
1. Older rules repealed
These Directions repeal earlier Resource Raising rules for commercial banks, announced in a November 28, 2025 circular.
Background
2. Older rules repealed
This document repeals RBI's earlier instructions on resource raising for commercial banks.
3. Earlier repeals stand
Guidelines already repealed before these Directions stay repealed.
4. Old rules stay repealed
Rules repealed before this document was issued remain repealed.
5. Old actions preserved
Anything already done under the old rules stays governed by those old rules.
6. Approvals carried over
Approvals given under the cancelled rules are now treated as given under these rules.
7. Other laws still apply
These Directions add to other laws. They do not replace any of them.
8. RBI's reading final
RBI's interpretation of any part of these Directions is final and binding.
The same subject for other kinds of institution
The same subject for other kinds of institution.
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