RBI defers capital market exposure norms to July 1

ET BureauLast Updated: Mar 31, 2026, 06:18:00 AM IST

Synopsis

The Reserve Bank of India has postponed new capital market exposure rules. The implementation date is now July 1, 2026. Banks issuing payment commitments to stock exchange clearing corporations will see eased capital adequacy requirements. Capital will only be held on the portion classified as capital market exposure. These changes follow updates to the central bank's credit facilities framework.

Mumbai: The Reserve Bank of India (RBI) on Monday deferred the implementation of capital market exposure norms by three months to July 1, 2026. It also eased capital adequacy norms for banks issuing payment commitments to stock exchange clearing corporations by limiting the exposure on which capital must be held.

In a revised circular, the Reserve Bank of India said such irrevocable payment commitments will continue to attract a 100% credit conversion factor, but banks will be required to maintain capital only on the portion classified as capital market exposure.

RBI said the applicable risk weight on the capital market exposure will be 125%.

The changes follow amendments to the central bank's credit facilities framework and supersede an earlier directive issued in February. The revised norms will come into effect from the date a bank implements the amended credit facilities rules or from July 1, 2026, whichever is earlier.

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