Changeflow GovPing Banking & Finance Final Directions on Basel III Capital Charge fo...
Priority review Rule Amended Final

Final Directions on Basel III Capital Charge for Credit Risk

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Summary

The Reserve Bank of India has issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026, amending the standardised approach framework for calculating capital charge for credit risk. The final directions incorporate feedback from the October 2025 draft and aim to enhance robustness, granularity, and risk sensitivity while converging with international Basel III standards. These directions shall be effective from April 1, 2027, applying to all scheduled commercial banks in India.

Why this matters

Scheduled commercial banks should initiate internal Gap assessments against the final standardised approach directions now, rather than waiting until late 2026. The published annex detailing how stakeholder feedback was addressed provides insight into which draft provisions were modified — banks that submitted comments should cross-reference their submissions against the final text to confirm their concerns were addressed.

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What changed

The Reserve Bank of India has finalised amendments to the standardised approach framework for calculating capital charge for credit risk under Basel III. The final directions incorporate modifications based on stakeholder feedback received during the October 2025 draft consultation period. The amendments aim to enhance the framework's robustness, granularity, and risk sensitivity while achieving convergence with international Basel III standards.

Scheduled commercial banks in India will face updated capital requirements under the revised standardised approach beginning April 1, 2027. Banks should review the final directions and the published annex addressing stakeholder feedback to understand the specific changes from the draft version. Compliance teams should begin assessing current capital calculation methodologies against the new requirements well in advance of the effective date.

Archived snapshot

Apr 28, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Press Releases

| () | |
| Date : Apr 27, 2026 | |
| RBI issues Final Directions on Basel III - Capital Charge for Credit Risk under Standardised Approach | |
| | The Reserve Bank had, on October 07, 2025, issued the Draft Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2025 seeking feedback from stakeholders. The draft Directions proposed amendments to the existing standardised approach framework for calculating the capital charge for credit risk with the objective of enhancing its robustness, granularity, and risk sensitivity as well as convergence with the international standards.

  1. Feedback received on the above draft has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the Final Directions. A statement on the feedback received for the draft Directions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026. These Directions shall be effective from April 1, 2027.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/149 | | The Reserve Bank had, on October 07, 2025, issued the Draft Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2025 seeking feedback from stakeholders. The draft Directions proposed amendments to the existing standardised approach framework for calculating the capital charge for credit risk with the objective of enhancing its robustness, granularity, and risk sensitivity as well as convergence with the international standards.

  1. Feedback received on the above draft has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the Final Directions. A statement on the feedback received for the draft Directions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026. These Directions shall be effective from April 1, 2027.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/149 |
| The Reserve Bank had, on October 07, 2025, issued the Draft Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2025 seeking feedback from stakeholders. The draft Directions proposed amendments to the existing standardised approach framework for calculating the capital charge for credit risk with the objective of enhancing its robustness, granularity, and risk sensitivity as well as convergence with the international standards.

  1. Feedback received on the above draft has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the Final Directions. A statement on the feedback received for the draft Directions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026. These Directions shall be effective from April 1, 2027.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/149 | |

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Classification

Agency
RBI
Published
April 27th, 2026
Compliance deadline
April 1st, 2027 (338 days)
Instrument
Rule
Branch
Executive
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
Press Release: 2026-2027/149
Supersedes
Draft Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2025

Who this affects

Applies to
Banks
Industry sector
5221 Commercial Banking
Activity scope
Capital requirements Credit risk assessment Bank capital adequacy
Geographic scope
India IN

Taxonomy

Primary area
Banking
Operational domain
Compliance
Compliance frameworks
Basel III
Topics
Securities Financial Services

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