RBI Seeks Comments On Draft Amendments To Standardised Approach For Counterparty Credit Risk

The Reserve Bank of India (RBI) on Wednesday invited public comments on draft amendment directions on the Standardised Approach for Counterparty Credit Risk.

Among the key changes proposed by the central bank are clarification on the scope of Counterparty Credit Risk (CCR) across both banking and trading book exposures, treatment of multiple margin agreements and multiple netting sets elaborated in view of the legal or regulatory developments in netting and margining guidelines, and guidance on the treatment of transactions where a bank acts as a clearing member of Sebi recognised stock exchanges in the equity derivatives and commodity derivatives segments.

Further, the RBI also proposed treatment for deferment of option premium, guidance on computation of effective notional for options, and inclusion of disclosure templates for Standardised Approach for Counterparty Credit Risk (SA-CCR), according to the notification.

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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 (SA-CCR), with an intended implementation date of April 1, 2018. However, the implementation of these guidelines was subsequently deferred, the RBI said.

The central bank invited comments from regulated entities, market participants, and other interested parties by July 1, 2026.

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