A Note on the Draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026

This note summarises, compares, and analyses the draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026, with the requirements in the existing directions. The proposed amendment introduces significant changes in Pillar 3 disclosure requirements. It aims to align the existing disclosures with Basel-style Pillar 3 disclosures. The key changes impact disclosure aspects such as the format of the table/template used for presenting information, the level of granularity of information, narrative information, the frequency of disclosures, risk management processes, and the key risk metrics dashboard. It strengthens the governance around disclosures by increasing oversight and accountability of the board and senior management towards internal control processes, review mechanisms, and approvals. The proposed amendments shall come into effect from the quarter ended September 30, 2026. It is a crucial step towards providing transparent, meaningful, consistent, and comparable information on the prudential position of banks to the market participants. It will mitigate information asymmetry, increase confidence of the users, and instill market discipline in the system.