The Reserve Bank of India (RBI) on October 07, 2026, issued the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026, to further amend the Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Directions, 2025.
In paragraph 75(5) (i), sub-paragraph (a) shall be replaced by the following, namely: –
“(a) Where a bank acts as a clearing member of a QCCP for its own purposes, a risk weight of 2 per cent shall be applied to the bank’s trade exposure to the QCCP in respect of OTC derivatives transactions, exchange traded derivatives transactions, and SFTs. Where the clearing member (bank) offers clearing services to clients, the 2 per cent risk weight also applies to the clearing member’s (bank) trade exposure to the QCCP that arises in cases where the clearing member (bank) is obligated to reimburse the client for any losses on such transactions in the event that the QCCP defaults.”.
[Notification No. - RBI/2026-27/287 DOR.MRG.REC.No.243/00-00-001/2026-27]
