The amendments revises risk weights for ratings assigned by S&P, Fitch, and Moody’s, and introduces a distinct risk-weight mapping for ratings issued by CareEdge Global IFSC Limited for exposures originating from the International Financial Services Centre (IFSC). For claims rated by S&P, Fitch, or Moody’s, risk weights range from 20% for the highest ratings to 150% for low-rated exposures, while unrated claims generally attract 100%. The directions impose stricter treatment for unrated exposures, i.e. claims with aggregate banking system exposure exceeding Rs 200 crore, or exposures that were earlier rated but later became unrated with exposure over Rs 100 crore, will attract a higher 150% risk weight. The unrated corporate claims cannot receive a risk weight lower than that of the sovereign of incorporation.
(Link: For Commercial Banks RBI Circular 189/2026 Dated 09/01/2026)
(Link: For Small Finance Banks RBI Circular 190/2026 Dated 09/01/2026)
(Link: For All India Financial Institutions RBI Circular 191/2026 Dated 09/01/2026)