RBI revises capital adequacy norms for AIFIs and Payments Banks, introducing 2% risk weight on QCCP exposures effective October 2026.
RBI Revises QCCP Exposure Norms for AIFIs and Payments Banks
The Reserve Bank of India has issued separate amendment directions in 2026 for Adjusted Net Stable Funding Ratio (AIFI) institutions and Payments Banks, prescribing a 2% risk weight on trade exposures to Qualifying Central Counterparties (QCCPs). These amendments align systemic risk frameworks across bank categories.
The Fifth Amendment Directions, 2026 for AIFIs and Third Amendment Directions, 2026 for Payments Banks apply to eligible client clearing transactions, margining requirements, and trade eligibility. The 2% risk weight reflects lower default risk in centrally cleared exposures and supports liquidity in derivatives markets.
Regulated entities must update internal capital and reporting systems to account for the revised weightings. Legal teams should ensure coordination between compliance and treasury departments for audit and supervisory reporting requirements.