The Reserve Bank of India (RBI), on April 8, 2026, issued its Statement on Developmental and Regulatory Policies outlining key measures across regulations, supervision, payment systems, and financial markets. Under the regulatory segment, RBI proposed to simplify capital adequacy norms by removing the condition restricting inclusion of quarterly profits in CRAR computation for commercial banks. It also proposed to review the Investment Fluctuation Reserve (IFR) framework by dispensing with IFR requirements for certain banks already maintaining market risk capital, while harmonising norms for other bank categories.
On the supervision front, RBI has undertaken consolidation of supervisory instructions, proposing 64 Master Directions covering multiple functional areas. This follows an earlier exercise where over 9000 regulatory instructions were streamlined into 238 Master Directions. Additionally, RBI has initiated a review of matters placed before bank boards to improve governance efficiency and enable more focused strategic oversight.
In the payments and financial markets domain, RBI proposed easing onboarding of MSMEs onto the Trade Receivables Discounting System (TReDS) by removing due diligence requirements, thereby improving access to working capital. Further, to deepen the financial markets, RBI has decided to expand participation in the term money market to include non-bank entities such as NBFCs and financial institutions, along with enhancing borrowing limits for primary dealers, aiming to improve liquidity and monetary transmission.
[Press Release: 2026-2027/38]
