Reserve Bank of India issues third amendment guidelines on capital adequacy for Payments Banks, specifying a 2% risk weight for QCCP exposures
Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
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Reserve Bank of India (RBI) issued the Third Amendment to the Prudential Norms on Capital Adequacy for Payments Banks Directions on October 7, 2026, with the amendments taking effect from the date of issuance. The amendments stipulate that when a bank acts as a clearing member of a QCCP, a 2% risk weight applies to QCCP transaction exposures related to OTC derivatives, exchange traded derivatives and SFTs; the same risk weight applies if the bank provides clearing services to clients and is required to compensate clients for losses in the event of a QCCP default.
The amendments clarify the risk weights for QCCP transaction exposures of Payments Banks acting as clearing members, as well as the scenario in which they compensate clients for losses, making it easier for relevant institutions to verify capital measurement requirements.
Source:Reserve Bank of India — Notifications · rbi.org.in