RBI finalises new capital-charge rules for banks' counterparty credit risk

The Reserve Bank of India has issued final Amendment Directions on the Standardised Approach for Counterparty Credit Risk (SA-CCR), after circulating draft directions on June 10, 2026 and inviting stakeholder feedback until July 1, 2026. The directions amend the capital-charge instructions for counterparty credit risk in RBI's Master Direction on Forthcoming Instructions for commercial banks. Among the changes: the scope of counterparty credit risk is clarified for both banking-book and trading-book exposures; the treatment of multiple margin agreements and multiple netting sets is addressed in light of recent legal and regulatory developments; rules are set out for banks acting as clearing members of SEBI-recognised stock exchanges in equity and commodity derivatives; guidance is given on the deferment of option premiums and on calculating the effective notional amount for options; and new disclosure templates for SA-CCR are introduced.

The amendments incorporate changes made after reviewing feedback on the draft. They apply to commercial banks and will come into effect from April 1, 2027.