RBI Invites Comments on Draft Capital Adequacy Amendment Directions 2026

Press Release no. 2026-2027/290; Dated: 19.05.2026

The Reserve Bank of India (RBI) has released draft amendment directions relating to Pillar 3 disclosure requirements under the capital adequacy framework.

The draft seeks to clarify applicability and scope of Pillar 3 disclosures for banking groups and individual banks to strengthen transparency and regulatory disclosures.

1. Applicability at the Top Consolidated Level of Banking Group

Under the draft directions, Pillar 3 disclosures shall apply at the top consolidated level of the banking group to which the capital adequacy framework is applicable.

Accordingly, where a banking group is subject to consolidated capital adequacy requirements, disclosures must be made at the highest consolidated entity level.

2. Disclosure Requirement for Non-Top Consolidated Banks

RBI has clarified that where a bank is not the top consolidated entity in the banking group, the bank shall be required to make Pillar 3 disclosures on a stand-alone basis.

This requirement ensures transparency and disclosure consistency even for banks operating within larger banking groups.

3. Applicability to All Banks

The draft directions provide that Pillar 3 disclosures shall be mandatory for all banks, irrespective of listing status or financial reporting obligations.

Accordingly, the disclosure requirement shall extend to:

• Listed banks
• Unlisted banks
• Banks not listed on stock exchanges
• Banks not otherwise required to publish financial results or financial statements

This clarification broadens the scope of applicability of disclosure requirements across the banking sector.

4. Objective of Pillar 3 Disclosures

Pillar 3 disclosures form part of the prudential regulatory framework aimed at promoting:

• Market discipline
• Transparency in risk exposures
• Better assessment of capital adequacy
• Enhanced disclosure of financial and risk positions

The framework enables stakeholders to assess a bank’s risk profile, capital position and prudential compliance.

5. Objective of the Draft Amendments

The draft amendment directions seek to strengthen consistency, transparency and uniformity in disclosure requirements across banks and banking groups.

By clarifying applicability at both consolidated and stand-alone levels and extending disclosures to all banks, RBI aims to improve market discipline and enhance disclosure standards under the capital adequacy framework.

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