The Reserve Bank of India (RBI) on March 10, 2026, issued the Reserve Bank of India (Standalone Primary Dealers) Amendment Directions, 2026.
The following has been stated namely: -
• Paragraph 9(6) has been substituted namely: -
“9(6) Tier 1 capital means paid-up capital, statutory reserves and other disclosed free reserves including quarterly profits.
Inclusion of quarterly profits shall be subject to the following conditions:
(i) The financial statements shall be subjected to limited review / audit on a quarterly basis by the statutory auditors.
(ii) Such profits shall be reduced by average dividend paid in the last three years and the amount which can be reckoned for inclusion would be arrived at as under:
EPt = NPt - 0.25 *D*t
Where:
EPt = Eligible profit up to quarter ‘t’ of the current financial year, t varies from 1 to 4
NPt = Net profit up to quarter ‘t’
D = average dividend paid for / pertaining to the last three financial years
Losses in the current year shall be fully deducted from Tier 1 capital.
Investment in subsidiaries (where applicable), intangible assets, losses in current accounting period, deferred tax asset and losses brought forward from previous accounting periods shall be deducted from the Tier 1 capital.”
This shall come into force on March 10, 2026.
[Notification No. RBI/2025-26/232]
