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August 2026
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FEMA & RBIInfrastructure Debt Fund-NBFCs under Upper Layer regulation to follow the large exposure limits of NBFC-IFCs: RBI amends concentration risk Directions
IDF-NBFC: IFC exposure limitsRule changeRBI has inserted paragraph 39A in its concentration risk Directions for NBFCs. The large exposure limits that apply to Infrastructure Finance Companies (NBFC-IFC) now also apply to Infrastructure Debt Fund-NBFCs (IDF-NBFC) that are subject to Upper Layer regulations. The amendment is dated 25 August 2026 and is in force with immediate effect.
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Company LawMCA FAQs on foreign companies and Indian subsidiaries: FC-1 within 30 days, FC-2 for every RBI extension, apostille rule turns on the place of signing
FC-1 within 30 daysClarifiedThe Ministry of Corporate Affairs has put out FAQs on registration of foreign companies and on Indian subsidiaries of foreign body corporates. They cover Forms FC-1 to FC-4, name reservation under rules 8 and 8A, the documents ROC-CRC expects, and when notarisation, apostille or consularisation is needed.
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FEMA & RBIRBI proposes one set of rules on loan interest rates for all lenders, covering fixed and floating loans
Fixed + floatingComments invitedThe draft Interest Rates on Loans and Advances Directions, 2026 would harmonise the framework for banks, NBFCs, AIFIs, RRBs and co-operative banks. Comments closed on 11 September 2026.
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FEMA & RBIRBI draft CVA framework: banks to compute Credit Valuation Adjustment capital charge under Basel III basic approach from 1 April 2027, with a simpler option for smaller derivative books
CVA capital charge: draftComments invitedRBI released draft Directions on 7 August 2026 to replace its 2011 Credit Valuation Adjustment (CVA) framework with the basic approach (BA-CVA) of the final Basel III framework. Banks could choose the full or reduced version; a bank with non-centrally cleared derivatives of up to ₹10 lakh crore notional could instead set its CVA charge at 100% of its counterparty credit risk charge. Proposed date of effect is 1 April 2027; comments closed on 28 August 2026.
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FEMA & RBIRBI draft proposes to rewrite banks’ leverage ratio chapter on the Basel 2017 standard from 1 April 2027; text puts the minimum at 4% for D-SIBs and 3.5% for other banks
Leverage ratio: draft rewriteComments invitedRBI released a draft on 7 August 2026 to amend Chapter VII (Leverage Ratio framework) of its capital adequacy Directions for commercial banks, to align with the Basel Committee’s ‘Leverage Ratio 2017 Standard’. The draft sets out how the exposure measure is to be built from on-balance sheet, derivative, SFT and off-balance sheet exposures, and proposes 1 April 2027 as the date of effect. Comments were invited till 28 August 2026; the window has closed.
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Foreign TradeInterest subvention on export credit: EXIM Bank replaces RBI as implementing agency from 1 April 2026
RBI → EXIM BankRule changeTrade Notice 17/2026-27 records the transition under the Export Promotion Mission – Niryat Protsahan. Banks will now claim reimbursement from EXIM Bank; the benefit still reaches the MSME exporter upfront.
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FEMA & RBIRBI issues final Directions on loan recovery and recovery agents; in force from 1 January 2027
1 January 2027Rule changeThe Amendment Directions cover fair treatment of borrowers, conduct of employees and recovery agents, and technology-based recovery on financed mobile devices — for banks, NBFCs and HFCs.
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FEMA & RBIRBI names 17 NBFCs in the Upper Layer for 2026-27; PNB Housing Finance and Sammaan Capital continue under enhanced regulation
17 NBFCs in Upper LayerNew facilityRBI has released the 2026-27 list of NBFCs in the Upper Layer (NBFC-UL) under Scale Based Regulation, based on financials as on 31 March 2026 and on revised identification criteria. Seventeen NBFCs are named. Two more — PNB Housing Finance and Sammaan Capital — do not meet the criteria this time but stay in the Upper Layer because the enhanced requirements run for at least five years.
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FEMA & RBIRBI draft for State and Central Co-operative Banks: exposure capped at 20% of Tier-I capital per borrower and 25% per group, new housing loan ceilings proposed from 1 April 2027
20% single, 25% group capComments invitedRBI issued two draft Directions on 6 August 2026 for Rural Co-operative Banks (State and Central Co-operative Banks). They propose exposure limits of 20% of Tier-I capital for a single counterparty and 25% for a group, a 15% cap each on real estate exposure and unsecured advances, and housing loan ceilings of ₹60 lakh to ₹3 crore by deposit size — all from 1 April 2027. Comments were due by 28 August 2026; the window has closed.
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FEMA & RBIRBI draft proposes NBFCs offer only term loans, no revolving credit — credit-card NBFCs excepted; comment window closed on 28 August 2026
Draft: no revolving creditComments invitedRBI released draft amendment directions on 6 August 2026 proposing that an NBFC offer only credit products in the nature of term loans and no revolving credit products, except an NBFC authorised by RBI to issue credit cards. The draft defines “term loan” and “revolving credit” and proposes to delete the demand/call loan provisions. Comments were invited by 28 August 2026; that window has closed.
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FEMA & RBIRBI proposes to resume licensing of Urban Co-operative Banks ‘on tap’: draft asks for ₹10,000 crore deposits and ₹300 crore net worth from credit societies
UCB licences: draft rulesComments invitedRBI published draft guidelines on 5 August 2026 for licensing Urban Co-operative Banks on an ‘on tap’ basis. As proposed, only credit co-operative societies that are at least 10 years old, registered under the Multi-State Co-operative Societies Act, 2002, with deposits of at least ₹10,000 crore and net worth of at least ₹300 crore could apply. Comments were invited till 5 September 2026; that window has closed.
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FEMA & RBIRBI keeps repo rate unchanged at 5.25%, stance neutral; next MPC meeting on 5–7 October 2026
5.25%The Monetary Policy Committee voted unanimously to hold the repo rate. GDP growth for 2026-27 is projected at 6.7% and CPI inflation at 5.0%.
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