ARTICLE · 26 AUGUST 2025

RBI Issues Draft Circular On Counterparty Credit Risk And Potential Future Exposure

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On 20 August 2025, the Reserve Bank of India (RBI) issued a draft circular inviting public comments on the subject "Counterparty Credit Risk: Add-on factors for computation...

IndiaFinance and Banking

Introduction

On 20 August 2025, the Reserve Bank of India (RBI) issued a draft circular inviting public comments on the subject “Counterparty Credit Risk: Add-on factors for computation of Potential Future Exposure – Revised Instructions.” The draft circular modifies the extant framework contained in paragraph 5.15.3 of the Master Circular DOR.CAP.REC.2/21.06.201/2025-26 dated April 1, 2025 on Basel III Capital Regulations. Comments have been invited until 10 September 2025 through the RBI's Connect 2 Regulate portal or via email.

This development is a part of RBI's ongoing efforts to harmonise domestic capital adequacy rules with international standards set by the Basel Committee on Banking Supervision (BCBS), while also responding to the evolving Indian derivatives markets.

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