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:
- RBI/2025-26/173 DOR.CRE.REC.374/07-02-001/2025-26 dated 5th 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 9th 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 13th 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 19th 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.
About the author: The author of the Blog, Sayed Azhar Hasan, is a CFA (ICFAI), MBA, PGDIBF (Islamic Banking and Finance), ex banker with 29 years of banking experience and a management educator.
On social media:
LinkedIn : Sayed Azhar Hasan | LinkedIn
You Tube: Sayed Azhar Hasan – YouTube
Disclaimer: The information provided in this blog is for educational and informational purposes only and does not constitute professional financial, legal, or regulatory advice. While efforts have been made to ensure accuracy based on the RBI circulars, readers should consult official Reserve Bank of India (RBI) guidelines and professional advisors before making business or investment decisions. The views expressed are those of the author and do not necessarily reflect the official policy of any banking institution or regulatory body.
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