The RBI has issued the Sixth Amendment Directions, 2026, updating capital adequacy norms for Small Finance Banks, particularly legal opinion requirements for clearing members.
Revised Norms for Small Finance Banks
The Reserve Bank of India (RBI) issued the Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026 on October 7, 2026. The amendment modifies paragraph 75(5)(i) of the 2025 Directions, which mandates legal opinions from clearing member banks.
The RBI has amended the provision following a review to align it with international standards. The change is part of a broader regulatory effort to harmonize prudential requirements across different categories of banks, ensuring consistency in risk management and compliance protocols.
For legal professionals advising Small Finance Banks, this update signals a continued shift towards globally aligned regulatory expectations. Institutions must ensure that legal opinions obtained for clearing purposes reflect the revised standards and are integrated into compliance frameworks promptly.
Citations
- Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Sixth Amendment Directions, 2026