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Informist, Wednesday, Jun. 10, 2026

 

--RBI invites comments on draft norms on counterparty credit risk 

--RBI seeks comments on draft norms on counterparty credit risk by Jul 1 

--RBI moots draft norms on counterparty credit risk effective Apr 1, 2027 

 

NEW DELHI – The Reserve Bank of India on Wednesday released draft directions on a standardised approach for counterparty credit risk for banks, nearly a decade after the proposed implementation of these guidelines was deferred. The RBI has invited public comments on the draft directions on Standardised Approach for Counterparty Credit Risk by Jul. 1.

 

"In 2016, RBI issued final 'Guidelines for Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions' and 'Guidelines on Capital Requirements for Bank Exposures to Central Counterparties', both based on the Standardised Approach for Counterparty Credit Risk, with an intended implementation date of April 1, 2018," the RBI said in a release. "However, the implementation of these guidelines was subsequently deferred."

 

Considering the time elapsed and the legal and regulatory developments since then, the RBI has comprehensively reviewed the counterparty credit risk guidelines. The key changes between the proposed directions and the 2016 guidelines include clarification on the scope of counterparty credit risk across both banking and trading book exposures, the RBI said.

 

The new norms also change the treatment of multiple-margin agreements and multiple netting sets in light of legal and regulatory developments in netting and margining guidelines. The new norms also provide guidance on the treatment of transactions in which a bank acts as a clearing member of Securities and Exchange Board of India-recognised stock exchanges in the equity and commodity derivatives segments.

 

The draft norms also include treatment for deferring the option premium and guidance on computing the effective notional for options. The RBI has proposed that these draft directions come into effect from Apr. 1, 2027.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

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