The Reserve Bank of India (RBI) on June 16, 2026, issued the Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026 to further amend the Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Directions, 2025.
The following amendments have been stated:
• Paragraph 17(6)A shall be inserted as below:
“Exposures guaranteed under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 shall attract risk weight of zero percent to the extent of 75% of the guaranteed portion, i.e., to the extent of guaranteed portion wherein the settlement amount is expected to be received within thirty days from the date of invocation. The remaining exposure shall attract risk weight as per the extant guidelines.”
The above amendments shall come into force with immediate effect.
[Notification No. RBI/2026-27/134 DOR.STR.REC.113/09-18-201/2026-27]
