RBI plans extra capital for banks' derivatives from April 2027
The Reserve Bank of India (RBI) is planning new rules that will make banks keep extra capital aside for risky financial contracts like derivatives.
The goal? To update old rules from 2011 and make Indian banking safer and more in line with global standards.
If all goes as planned, these changes kick in from April 1, 2027.
Banks face 5% to 12% weights
Commercial banks will now have to check how risky their deals are based on who they are dealing with: stronger financial institutions get lower risk weights (as low as 5%), while weaker or unrated ones face higher weights (up to 12%).
Sectors like energy, manufacturing, agriculture, and mining also get their own risk levels between 3% and 7%.
Banks whose total amount of derivatives not cleared through a central clearing system is ₹10 lakh crore or less can use a simpler method if the RBI approves, though it may still deny the option if the derivative risk is significant.
Regular folks will not see much change directly, but this move is all about keeping the banking system solid.
You can send feedback on these rules until August 28, 2026.
Small Finance Banks, Payments Banks, and Local Area Banks are excluded.