MUMBAI, India, June 24 -- Reserve Bank of India issued the following notification:
RBI/2026-27/157
DOR.MRG.REC.No.143/21-01-002/2026-27
June 24, 2026
Reserve Bank of India (Local Area Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026
Please refer to paragraph 29 of the Reserve Bank of India (Local Area Banks - Prudential Norms on Capital Adequacy) Directions, 2025 dated November 28, 2025 which inter alia specifies the requirement for maintenance of capital charge on foreign exchange risk. Upon a review and to ensure greater alignment with international standards and consistent implementation across Local Area Banks, there is a felt need to amend these instructions.
2. Accordingly, in exercise of the powers con...