RBI Updates Capital Adequacy Norms for Small Finance Banks

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Issued on October 07, 2026

RBI Updates Capital Adequacy Norms for Small Finance Banks

RBI/2026-27/287
DOR.MRG.REC.No.243/00-00-001/2026-27

October 7, 2026

Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026

Please refer to paragraph 75(5) (i) of the Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Directions, 2025, on the requirement for clearing member banks to obtain legal opinion. On a review, it has been decided to amend these Directions to align them with international standards.

2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other provisions / laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. (i) These instructions shall be called the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026.