RBI CIRCULARS UPDATE SEPTEMBER 2026

BLOG 56/2026 DATED 1ST OCTOBER 2026

RBI has issued several circulars during the month of September 2026. Out of these we cover major circulars such as Capital requirement for Market Risk, Classification of Investments portfolio and export realisation.

Minimum Capital requirement for Market Risk:

What is Market Risk?

Market Risk is risk of losses arising on-balance sheet and off-balance sheet positions due to movements in market prices.

What is General Market Risk?

The risk of loss arising from changes in market prices.

What is Specific Risk?

The risk of loss arising from adverse movement in the price of an individual security owing to factors related to the individual issuer.

What is Trading Book?

All the instruments classified under Held for Trading (HFT).

What is Banking Book?

All the instruments other than in HFT viz Available for Sale (AFS), Held Till Maturity (HTM), Fair Value Through Profit and Loss (FVTPL- non-HFT)

Calculation of Market Risk:

Following Risk are to be calculated to arrive at the Market risk:

Interest Rate Risk         (Only for HFT Category)   –  IR

Equity Risk                    (Only for HFT Category)  –  EQ

Foreign Exchange Risk including gold and precious metals (For all categories)  – FX

• Market risk shall not be calculated on the positions that are deducted from bank’s regulatory capital.
• Market risk shall not be calculated on capital instruments deducted from bank’s regulatory capital or risk weighted at 1250%.
• Market risk shall not be calculated on NPA and securities matured and not paid.

Total Capital Requirement for Market Risk =

Capital Requirement for IR  X   Scaling factor of 1.3     +

Capital Requirement of EQ  X   Scaling factor of 3.5     +

Capital Requirement of FX  X    Scaling factor of 1.20

TCR = CR(IR) *  SF(IR)   +   CR(EQ) *  SF(EQ)   +   CR(FX) * SF(FX)

Ref: 472MDACBA450D67234F52BA2983DA6AED9DFC.PDF

Valuation of unquoted InvITs and REITs

Unquoted InvITs and REITs shall be valued as per the NAV declared by the InvIT/REIT. However, it NAV is also not available, then it is to be valued at Rs.1/-

Ref:NT26408EF9CCC46424A929E01BF357BC7936C.PDF

Time Period for realization of exports:

• The goods and services shall be realised within 9 months from the date of shipment of goods (9 months from the date of invoice in case of services).

• In case where export of goods or services is invoiced and settled in INR, the period of realisation and repatriation shall be 12 months. (Goods – from the date of shipment; Services – from the date of invoice)

Ref: FEMA23R2509202677C08DEDE2694B528FF6025930BF49F9.PDF

POLICY RATES (As per MPC meeting ended on 5^th August – rates unchanged)

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.

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