The Reserve Bank of India (RBI), on April 28, 2026, issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026, after reviewing stakeholder feedback on the draft directions released on October 7, 2025.
The Directions revise the existing standardised approach framework for calculating capital charge for credit risk, with the objective of enhancing robustness, granularity, and risk sensitivity, and aligning it with international Basel III standards. The RBI has incorporated necessary modifications based on feedback received, with a summary provided in the annex.
These Directions will come into force from April 1, 2027, providing sufficient transition time for banks to align with the revised regulatory framework.
[Notification No. Press Release: 2026-2027/149]
