RBI Circular for March 2026

March 13, 2026October 13, 2026 admin 0 Comments Amendment Directions, Borrowing and Lending, foreign exchange, Reserve Bank of India, unique Transaction

Unique Transaction Identifier for OTC Derivative Transactions

February 18, 2026

1. The Unique Transaction Identifier (UTI) has been conceived as one of the key data elements identified globally for reporting over-the-counter (OTC) derivative transactions with a view to enable policy makers to obtain a comprehensive view of the OTC derivatives market.

2. At present, all transactions in OTC markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives are reported to the Trade Repository managed by Clearing Corporation of India Limited (CCIL-TR). It has now been decided to mandate UTI for all such transactions. A framework for the implementation of UTI for OTC derivative transactions, is enclosed at Annex.

3. The directions shall come into effect from January 01, 2027 and shall be applicable to OTC derivative transactions entered into on or after the date the directions come into effect.

4. These directions have been issued in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 read with section 45U of the Act and of all the powers enabling it in this behalf.

Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026

February 16, 2026

1. The Reserve Bank of India had released draft amendment to Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 pertaining to changes in the External Commercial Borrowing (ECB) Framework on October 03, 2025 for public feedback. The Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 dated February 09, 2026 have now been published in the official gazette on February 16, 2026. Authorised Dealer Category I banks are directed to be guided by the amended Regulations while facilitating borrowing and lending transactions governed by these Regulations.

2. Provisions pertaining to ECB contained in Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations and related provisions pertaining to borrowing in Indian Rupees (INR) by persons resident in India contained in Master Direction – Borrowing and Lending transactions in Indian Rupee between Persons Resident in India and Non-Resident Indians/ Persons of Indian Origin have been reviewed and consolidated in the Regulations.

3. In view of the above, the following amendments are being made to the aforesaid master directions and Frequently Asked Questions (FAQs):

a. Para 1 to 12 of Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations shall be deleted;

b. Para 2 of Master Direction – Borrowing and Lending transactions in Indian Rupee between Persons Resident in India and Non-Resident Indians/ Persons of Indian Origin shall be deleted; and

c. Part I of FAQs on External Commercial Borrowings (ECB) and Trade Credits shall be deleted.

4. Authorised Dealer banks may bring the contents of the circular to the notice of their customers/ constituents concerned.

5. The directions contained in this circular have been issued under sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

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

February 13, 2026

1. Please refer to the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. On a review, consequent to the issuance of the Reserve Bank of India (Small Finance Banks – Credit Facilities) Amendment Directions, 2026 and in exercise of the powers conferred by the section 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called 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. The Amendment Directions modify paragraph 74(6) in ‘Chapter IV – Risk weighted assets (RWAs)’ of the Directions as under:

“Issue of irrevocable payment commitment by a bank to clearing corporations of stock exchanges on behalf of its client is a financial guarantee with a CCF of 100 per cent. However, capital shall be maintained only on the exposure reckoned as capital market exposure (CME) in terms of paragraph of the Reserve Bank of India (Small Finance Banks – Concentration Risk Management) Directions, 2025. Thus, capital is to be maintained on the amount taken for CME and the risk weight shall be 125 per cent thereon.”

4. The above amendment shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Small Finance Banks – Credit Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.

Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026

February 13, 2026

1. Please refer to the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026, and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called 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. The Amendment Directions modify paragraph 18(4) of ‘Chapter-III ‘General Guidelines’ of the Directions as under:

3 (1) The sub-paragraph (ii)(a)iii shall be substituted with the following:

“Acquisition finance and bridge finance for financing of promoter’s stake in new companies”

3(2) The sub-paragraph (ii)(b) shall be substituted with the following:

“Lending to individuals against eligible securities”

4. The above amendments shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.