We at Finakon track the regulatory changes. We also use AI to create a summary. We are providing a quick overview of the RBI circulars on a weekly basis on our website. The summary is neither exhaustive nor comprehensive. For accurate information, users shall refer to the original circular of the regulator. Finakon shall not be responsible for inferences drawn based on the summary provided.
RBI Notifies FEMA Authorised Persons Regulations, 2026
The Reserve Bank of India has issued the Foreign Exchange Management (Authorised Persons) Regulations, 2026 to streamline the authorisation framework for authorised persons under FEMA, improve foreign exchange service delivery, and simplify compliance requirements.
The revised framework includes amendments to the Master Directions on Money Changing Activities and Other Remittance Facilities, along with the supersession of several A.P. (DIR Series) Circulars issued between 2000 and 2015.
Key changes include:
- No fresh franchisee arrangements for money changing activities from May 06, 2026, with existing arrangements to be phased out within two years.
- Revised reporting requirements for FFMCs and non-bank AD Category II entities.
- Rationalisation and removal of multiple existing provisions under the Master Directions.
The Regulations were notified on April 30, 2026 and published in the Official Gazette on May 06, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13445
RBI Revises CET1 Capital Calculation Norms for Commercial Banks
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026, revising the framework for inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital calculations.
Under the revised norms, banks may include profits earned during the current financial year in CRAR calculations on a quarterly basis, subject to:
- Quarterly financial statements being audited or subjected to limited review.
- Eligible profits being calculated after adjusting for average dividend payouts of the previous three financial years using a prescribed formula.
The Directions also clarify that cumulative net losses up to the relevant quarter must be fully deducted while computing CET1 capital.
The amendment has come into effect immediately.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13446
RBI Revises CET1 Capital Calculation Norms for Small Finance Banks
The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026, revising the framework for inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital calculations.
Under the revised norms, Small Finance Banks may include current year profits in CRAR calculations on a quarterly basis, subject to:
- Quarterly financial statements being audited or subjected to limited review.
- Eligible profits being calculated after adjusting for average dividend payouts of the previous three financial years using a prescribed formula.
The Directions also clarify that cumulative net losses up to the relevant quarter must be fully deducted while computing CET1 capital.
The amendment has come into effect immediately.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13447
RBI Revises CET1 Capital Calculation Norms for Payments Banks
The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026, revising the framework for inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital calculations.
Under the revised norms, Payments Banks may include current year profits in CRAR calculations on a quarterly basis, subject to:
- Quarterly financial statements being audited or subjected to limited review.
- Eligible profits being calculated after adjusting for average dividend payouts of the previous three financial years using a prescribed formula.
The Directions also clarify that cumulative net losses up to the relevant quarter must be fully deducted while computing CET1 capital.
The amendment has come into effect immediately.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13448
