Draft Amendment Directions on inclusion of quarterly profits to Common Equity Tier 1 (CET1) capital for CRAR: The draft proposes amendments to RBI Prudential Norms for Capital Adequacy Directions, for revision of guidelines governing the inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital for computation of Capital to Risk Weighted Assets Ratio (CRAR) for banks. The banks may now include current-year profits in CET1 capital on a quarterly basis, subject to certain safeguards. These include mandatory auditing or limited review of financial statements and a standardized formula for calculating eligible profits, which deducts a portion linked to historical dividend pay-outs. Additionally, any cumulative net losses must be fully deducted while computing CET1 capital. The feedback/ comments from stakeholders are invited.
(Link: Draft Amendments to Directions Press Release Dated 08/04/2026)