RBI Seeks Public Comments On Draft Amendments To Counterparty Credit Risk Framework

The Reserve Bank of India (RBI) has opened a public consultation on proposed changes to its Standardised Approach for Counterparty Credit Risk framework (SA-CCR). Banks, market participants and other interested parties have been invited to submit their views by 1 July 2026.

The draft touches on several aspects of the existing framework. In scope, the RBI wants to clarify how counterparty credit risk applies across both banking book and trading book exposures, which has been an area of ambiguity.

What Changes Are Being Proposed

The draft also addresses how multiple margin agreements and multiple netting sets should be treated, updating the guidance in light of recent legal and regulatory developments around netting and margin rules.

A separate provision deals with transactions where a bank functions as a clearing member on SEBI-recognised stock exchanges in the equity derivatives and commodity derivatives segments, an area where specific guidance was previously lacking.

The proposed amendments also cover the treatment of deferred option premiums, how to compute the effective notional amount for options, and the addition of standardised disclosure templates for the SA-CCR framework.

Also Read - Govt Moves To Stop One Group From Sweeping Airport Privatisation Round Three

Why This Is Coming Now

The RBI had put out the original guidelines on counterparty credit risk and capital requirements for central counterparty exposures back in 2016, with an April 2018 implementation target. That rollout was later deferred.

The current consultation appears to be a renewed effort to bring the framework up to date and into effect, with revised provisions that reflect how the market and regulatory landscape have evolved since then.

Sources:

Moneycontrol

The Economic Times