RBI Circular 261/2026 Dated 30/03/2026 – Amendments to RBI Small Finance Banks Prudential Norms on Capital Adequacy Directions 

 The amendments relating to risk-weighted assets (RWAs), clarifies that irrevocable payment commitments issued by banks to clearing corporations on behalf of clients shall be treated as financial guarantees with a credit conversion factor (CCF) of 100%. However, capital is required to be maintained only on the exposure classified as capital market exposure (CME), with a risk weight of 125%. 

(Link: RBI Circular 261/2026 Dated 30/03/2026)

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