The RBI issued the Amendment Directions, 2026, revising provisions on deferment of option premium under the Commercial Banks (Miscellaneous) Directions, 2025.
RBI Updates Miscellaneous Norms for Commercial Banks
The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks – Miscellaneous) Amendment Directions, 2026, on October 7, 2026. The amendment pertains to Sub-section D of Chapter IV of the 2025 Directions, which governs the deferment of option premiums. The revision follows the issuance of the Commercial Banks (Forthcoming Instructions) Amendment Directions, 2026, and broader regulatory adjustments.
While the precise change is not detailed, the context indicates a recalibration of derivative-related accounting or payment deferral mechanisms. Such norms impact banks’ treasury operations and financial reporting, particularly in hedging instruments and structured deals involving embedded options.
Implication for practitioners: Bank treasury and legal divisions must reassess the treatment of option premiums in derivative contracts. The amendment may affect accounting recognition and revenue deferral schedules, requiring coordination with auditors and regulators.
Citations
- Reserve Bank of India (Commercial Banks – Miscellaneous) Amendment Directions, 2026
