RBI Circular 256/2026 Dated 30/03/2026 – Amendments to RBI Commercial Banks Prudential Norms on Capital Adequacy Directions 

The amendment clarifies that irrevocable payment commitments (IPCs) issued by banks to clearing corporations on behalf of clients shall be treated as financial guarantees with a credit conversion factor of 100%. However, capital is required to be maintained only on the portion classified as capital market exposure (CME) under the relevant concentration risk management framework. The applicable risk weight for such exposure has been prescribed at 125%. 

(Link: RBI Circular 256/2026 Dated 30/03/2026)

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