The Reserve Bank of India has issued a package of amendment directions to embed its finalised capital market exposure (CME) framework across the regulatory requirements applicable to commercial banks and small finance banks, following stakeholder feedback on draft CME directions published in October 2025. The draft CME directions were intended to provide an enabling framework for banks to finance acquisitions by Indian corporates, raise limits for bank lending against shares and units of REITs and InvITs while removing the regulatory ceiling on lending against listed debt securities, and move to a more principle-based approach for lending to capital market intermediaries. The amendments have been issued through updates to directions covering credit facilities, concentration risk management, prudential norms on capital adequacy, and financial statements presentation and disclosures, alongside an amendment to the commercial banks’ directions on undertaking of financial services; an annex sets out a statement on the feedback received. The Reserve Bank indicated that updates would be reflected as and when the changes become effective.
Reserve Bank of India 2026-02-13
Reserve Bank of India issues amendment directions implementing revised capital market exposure framework for commercial banks and small finance banks
The Reserve Bank of India has issued amendments to embed its finalised capital market exposure framework into regulations for commercial and small finance banks, following feedback on draft directions from October 2025. These amendments address credit facilities, concentration risk management, capital adequacy norms, and financial disclosures, with updates to be reflected upon effectiveness.