Select RBI Circulars Jan 2026

BLOG 9/2026 DATED 1ST FEB 2026

In this document we have covered the select RBI notifications and directives for the month of Jan 2026 and produced a gist of it. For detailed and full study, link is provided that will take us to the RBI communication.

NOTIFICATIONS:

1. RBI/2025-26/173 DOR.CRE.REC.374/07-02-001/2025-26 dated 5^th Jan 2026

Subject: Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026

https://website.rbi.org.in/documents/d/rbi/173cb_crm_amendments_related_party_20260103

Gist:

RBI has modified/clarified certain terms and some of them as under:

‘Related Person’ with respect to a bank shall mean a person, and the relatives of such a person, where the person:

(a) is either a promoter, or a director, or a KMP of the bank; or

(b) owns more than 5% of paid-up equity share capital of the bank or can, either singly or jointly, exercise more than 5% of the voting rights of the bank.

(c) can, through an agreement with the bank, nominate a director to its Board; or

(d) is either singly or jointly, in control of the bank.

‘Reciprocally Related Person’ means an individual who is either

• a director (excluding independent director / Nominee director appointed by the Government or RBI or a statutory body) of another commercial bank, or an AIFI, or a scheduled cooperative bank, or a subsidiary of a commercial bank; or
• a trustee of a mutual fund or an alternate investment fund established by any of the aforesaid regulated entities; or
• a relative of such a director or a trustee.

‘Related Party’ with respect to a bank shall mean a related person, a reciprocally related person, or any of the following entities:

(a) where a related person or a reciprocally related person is a partner, manager, KMP, director or a promoter; or

(b) where a related person or a reciprocally related person is a shareholder with more than 10% of paid-up equity share capital; or

(c) where a related person or a reciprocally related person is having control, whether singly or jointly with another person; or

(d) where a related person or a reciprocally related person controls more than 20% of voting rights on account of ownership or through a voting agreement or through any other arrangement; or

(e) where a related person or a reciprocally related person has the power to nominate a director to its Board; or

(f) which is accustomed to act on the advice, direction, or instruction of a related person or reciprocally related person; or

(g) where a related person or a reciprocally related person is a guarantor or a surety; or

(h) where a related person or a reciprocally related person is a trustee or an author or a beneficiary and where the entity is in the form of a private trust.

(i) which is related to the related person or a reciprocally related person as a subsidiary or a parent company or a holding company or an associate or a joint venture.

Materiality threshold ceiling:

Asset size of the bank (as per last audited b/s)	Materiality Threshold
Above  INR 10,00,000 crore	25 crore
1 lakh cr to 10 Lakh cr	10 crore
Less than 1 lakh crore	5 crore

• 2. RBI/2025-26/189 DOR.STR.REC.390/21-01-002/2025-26 dated 9^th Jan 2026

Subject: Reserve Bank of India (Commercial Banks- Prudential Norms on Capital Adequacy) Amendment Directions, 2026

https://website.rbi.org.in/documents/d/rbi/first-amendment-directions-capital-adequacy-scbs

Gist:

Risk weight for Non- Resident Corporate Borrowers:

S & P ,  Fitch	AAA to AA	–	A	BBB to BB	Below BB	Unrated
Moody’s	Aaa to Aa	–	A	Baa to Ba	Below Ba	Unrated
CareEdge Global IFSC Limited	AAA	AA	A	BBB	BB and below	–
Risk Weight	20%	30%	50%	100%	150%	100%

Authors Note: CareEdge Global IFSC is an Indian rating agency that provide credit ratings to Foreign Corporates also. The company is recognised by International Financial Services Centres Authority (India).

• 3. RBI/2025-26/193 FIDD.CO.FSD.BC.No.10/05.02.001/2025-26 dated 13^th Jan 2026

Subject: Modified Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC) during the financial year 2025-26

https://website.rbi.org.in/documents/d/rbi/circularonmissdatedjanuary132026

Gist:

Interest subvention for Short Term Crop Loan and Short Term loan to allied activities as under:

Financial Year	2025-26
Interest subvention	1.50%
Effective Rate to farmer	7.00%
Additional subvention for prompt repayment	3.00%
Final rate to Prompt farmers	4.00%
Maximum Loan limit	3 lakh with sub limit of 2 lakh for farmers involved only in activities related to Animal Husbandry, dairy, fishery, bee keeping etc.

• 4. RBI/2025-26/195 DOR.STR.REC.393/044..02.001/2025-26 dated 19^th Jan2026

Subject: Interest Subvention for Pre- and Post- Shipment Export Credit under Export Promotion Mission (EPM) – Niryat Prothsahan

https://website.rbi.org.in/documents/d/rbi/interestsubventionforpreandpostshipmentexportcredit190126

Gist:

Government has announced NIRYAT PROTSAHAN scheme under Export Promotion Mission on a pilot basis.

POLICY RATES

REPO rate under Liquidity Adjustment Facility reduced to 5.25%

Standing Deposit Facility Rate (SDF)                                  5.00%

Marginal Standing Facility Rate (MSF)                               5.50%

Fixed Reverse Repo Rate                                                   3.35%

Bank Rate                                                                          5.50%

Penal interest for shortfall of CRR & SLR                           BR +3% = 8.50% 

                                                                                       BR + 5% = 10.50%

RESERVE RATES                     

CRR                                                                                    3%

SLR                                                                                     18%

Authors Note: For shortfall in CRR and SLR of 3 days or less a rate of Bank Rate + 3% is charged by RBI while for shortfall of above 3 days a of Bank Rate + 5% is charged.