# RBI sets new capital rules for banks by 2027

> India's central bank finalizes Basel III market risk standards with a three-year transition period for commercial banks.
- Title: RBI sets new capital rules for banks by 2027 | Shortify
- Summary: India's central bank finalizes Basel III market risk standards with a three-year transition period for commercial banks. Banks have until April 2027 to…
- Keywords: reserve bank of india, rbi, basel iii, commercial banks, capital requirements, market risk, regulatory framework, minimum capital, simplified standardised approach, india, sets, capital
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-issues-final-basel-iii-market-risk-capital-rules-for-banks-new-minimum-requirements-to-kick-in-from-april-2027/articleshow/134391682.cms
- Author: ET Online
- Published: 2026-09-21T14:18:00+00:00
- Read time: 1 min
- Topics: reserve bank of india, rbi, basel iii, commercial banks, capital requirements, market risk, regulatory framework, minimum capital, simplified standardised approach, india
## RBI finalizes new capital rules
The Reserve Bank of India issued final directions on market risk capital requirements for commercial banks, aligning with revised Basel III standards.
## April 2027 deadline for compliance
Commercial banks must adopt the revised framework by April 1, 2027, with intermediate transition steps already in place since April 2024.
## Simplified approach to market risk
The framework adopts the Simplified Standardised Approach for calculating market risk capital, making requirements more concise and flexible.
## Trading book and forex rules updated
The RBI removed separate trading book definitions and revised foreign exchange risk capital charges to align with Basel Committee guidelines.
## Interest rate and derivatives treatment
The RBI revised specific risk tables for interest rate risk and expanded hedging rules to include total return swaps for credit derivatives.
## Mutual funds and ETFs in trading book
Capital treatment for debt mutual funds and exchange-traded funds held for trading has been revised based on underlying risk drivers.
## Key takeaway

Banks have until April 2027 to comply with revised capital requirements for market risk, with intermediate steps already underway since 2024.