Master Direction – Reserve Bank of India (Prudential Norms on Capital Adequacy for Regional Rural Banks) Directions, 2025
The Reserve Bank of India’s Master Direction on Prudential Norms on Capital Adequacy for Regional Rural Banks (RRBs), effective from April 1, 2025, mandates RRBs to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9%, detailing the composition and limits of Tier 1 and Tier 2 capital. It also outlines the methodology for computing risk-weighted assets and stipulates annual reporting requirements to ensure financial stability and compliance.