RBI/DoR/2023-24/105

DoR.FIN.REC.40/01.02.000/2023-24                                          September 21, 2023

Master Direction - Reserve Bank of India (Prudential Regulations on Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation and

Operation of Investment Portfolio Norms and Resource Raising Norms for All India Financial Institutions) Directions, 2023

In exercise of the powers conferred by Section 45L of the Reserve Bank of India Act, 1934, the Reserve Bank of India (hereinafter called the Reserve Bank) being satisfied that it is necessary and expedient in the public interest and in the interest of financial sector policy so to do, hereby, issues the Directions hereinafter specified.

1. “financial services company” means a company engaged in the 'business of financial services as defined in the Reserve Bank of India (Financial Services provided by Banks) Directions, 2016 dated May 26, 2016 as amended from time to time;
2. Thus, with full implementation of capital ratios, the capital requirements for AIFIs are summarised as follows:

3. 	Regulatory Capital	As % to RWAs
   (i)	Minimum Common Equity Tier 1 Ratio	5.5
   (ii)	Additional Tier 1 Capital	1.5
   (iii)	Minimum Tier 1 Capital Ratio [(i) +(ii)]	7.0
   (iv)	Tier 2 Capital	2.0
   (v)	Minimum Total Capital Ratio (MTC) [(iii)+(iv)]	9.0