RBI has issued the Reserve Bank of India (Commercial Banks – Credit Valuation Adjustment Framework) Directions, 2026, which set out how commercial banks must compute the capital charge for CVA risk on derivatives. The Directions come into effect from 1 April 2027. Six amendment directions were issued the same day: two take effect from 1 April 2027 and four, on exposures to qualifying central counterparties, from the date of issue.
Rule changeSource: RBI (Commercial Banks – Credit Valuation Adjustment Framework) Directions, 2026, RBI/DOR/2026-27/474 dated 7 October 2026Read the full story →
The Monetary Policy Committee, at its 63rd meeting on 5–7 October 2026, voted unanimously to increase the policy repo rate by 25 basis points to 5.50 per cent and changed the stance to calibrated tightening. The SDF rate stands at 5.25 per cent and the MSF rate and Bank Rate at 5.75 per cent, all with immediate effect. RBI projects real GDP growth of 7.1 per cent and CPI inflation of 5.2 per cent for 2026-27.
RBI has issued its Master Circular consolidating instructions to banks on credit facilities to Scheduled Castes and Scheduled Tribes. It covers credit planning, help with applications, no insistence on deposits, rejection of loan applications only at the next higher level, the 40 per cent share under the DRI scheme, the credit guarantee scheme for SC entrepreneurs, and monitoring through a special cell at Head Office.
RBI has withdrawn 268 circulars and guidelines on currency management, dated from 9 August 1976 to 24 April 2025. Some have been consolidated into function-wise Master Directions and subject-specific instructions; others have become obsolete or redundant. A separate circular of the same day lets a bank’s Board delegate monitoring of ATM cassette swaps to a Committee of Executives.
RBI has amended its directions on acquisition and holding of shares or voting rights in banks. SEBI-registered mutual funds, IRDAI-registered insurers and PFRDA-registered pension funds outside the bank’s promoter group can get a one-time approval, through PRAVAAH, for subsequent acquisitions of major shareholding up to 10 per cent. Prior approval for the initial acquisition stays mandatory.
RBI has issued a fresh circular on the monthly Non-Resident Deposits – Comprehensive Single Return (NRD-CSR). The return, code R012, is filed on the CIMS Sankalan portal through one of three channels, on or before the 10th of the following month. The circular supersedes A.P. (DIR Series) Circular No. 19 of 7 August 2013, which provided for filing on the XBRL platform.
RBI has modified its July 2024 circular on online submission of Form A2. Authorised dealers may now frame their internal guidelines for outward remittances with the approval of the Board or of any Board Committee / Management Committee to which the Board has delegated powers. All other instructions of the 2024 circular remain unchanged.
IFSCA has issued the framework under which Venture Capital Schemes and Restricted Schemes in the IFSC can issue senior and junior or subordinate units with different distribution rights, to facilitate blended finance. Minimum investment in junior units is USD 2 million (USD 1 million for accredited investors). ESG schemes may accept grants up to 49% of corpus.
RBI has amended regulation 5(1) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 before they took effect. The period to realise and repatriate export value is nine months instead of fifteen, and twelve months instead of eighteen where the export is invoiced or settled in rupees. The amendment is in force from 1 October 2026.
RBI has notified the terms of the Government of India supported Line of Credit of ₹4,850 crore extended by Exim Bank to the Government of Maldives for developmental projects. The agreement is effective from 27 August 2026. Goods, works and services worth at least 75% of the contract price must be supplied from India, and no agency commission is payable on exports under the LoC.
IFSCA has relaxed the eligibility for being notified as a Qualified Jeweller for importing gold or silver through IIBX. Holders of a valid DGFT Advance Authorisation, a valid GJEPC Registration-cum-Membership Certificate, or a DGFT authorisation for specific ITC (HS) codes can now apply through IIBX. They must trade through a Bullion Trading Member and import only the authorised items.
RBI has inserted paragraphs 84A and 84B in the Commercial Banks investment portfolio Directions, 2025 to bring uniformity in how banks value units of Infrastructure Investment Trusts and Real Estate Investment Trusts. Quoted units follow the rules for quoted securities; unquoted units are valued at the NAV disclosed by the trust, failing which at ₹1. In force from 22 September 2026.
RBI has finalised its instructions on novation of OTC derivative contracts, first released as a draft on 9 July 2025. Instead of a separate direction, the instructions are inserted in the four Directions governing OTC foreign exchange, rupee interest rate, government securities and credit derivatives. They apply to any novation undertaken on or after 22 September 2026.
RBI has issued the Reserve Bank of India (Commercial Banks – Minimum Capital Requirements for Market Risk) Directions, 2026, finalising draft guidelines of 17 February 2023. Banks must use the Simplified Standardised Approach, with capital computed for interest rate, equity and foreign exchange risk. The Directions take effect from 1 April 2027.
IFSCA has amended its Master Circular for Distributors in the IFSC. UAE, Singapore, Australia and the European Union are specified as jurisdictions for regulation 32(1)(a) and (c) of the Capital Market Intermediaries Regulations, 2025, provided they are not FATF-listed or notified as high risk. “Jurisdiction” refers to the domicile of the product, not the location of its manager.
RBI has amended paragraph 5(1)(v) of the Commercial Banks – Know Your Customer Directions, 2025. The option of taking an original certified copy of KYC documents — certified by an overseas bank branch, a notary abroad, a court magistrate, a judge or the Indian Embassy/Consulate — was available for NRIs and PIOs. It now also covers Foreign Portfolio Investors, with immediate effect from 18 September 2026.
The Ministry of Finance says the new UPI framework under the Payment and Settlement Systems Act, 2007 does not touch person-to-person transfers. Merchant payments up to ₹2,000 and small merchants receiving up to ₹1 lakh a month stay at zero MDR. A 0.4% MDR applies to merchant payments above ₹2,000, capped at ₹300 for ₹75,000 and above; customers are not to be charged.
IFSCA may now extend the validity of an expired placement memorandum of a Venture Capital or Restricted Scheme even where the FME applies after expiry. The FME pays an extension fee of 50% of the fresh-filing fee for each six-month period plus a late fee of 50% of that extension fee, cannot make material changes, and cannot pass the late fee to the scheme or investors.
The temporary reliefs on fresh FCNR(B) deposits of three to five years and NRE term deposits of three years or more were to run until 30 September 2026. On 25 August 2026 RBI moved the end date to 31 August 2026 for the CRR/SLR exemption and the interest-rate relaxation. On 11 September 2026 the priority-sector (ANBC) exclusion was aligned to the same date.
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