Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025
The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025 prescribing a comprehensive framework for governance, measurement, monitoring and reporting of liquidity and interest-rate risks for commercial banks. The Directions set out board responsibilities, policy and strategy requirements, stress-testing and contingency funding plan (CFP) norms, intraday liquidity rules, and detailed calibration and disclosure norms for Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
It requires banks to implement robust liquidity-risk governance (including MIS, limits, diversification of funding and collateral management), define tolerance and monitoring tools (flow and stock approaches), conduct periodic stress tests and maintain contingency plans. The Directions also specify intraday liquidity monitoring, LCR/NSFR calculation rules and HQLA categorisation, interest rate risk (earnings and economic-value perspectives), treatment of foreign-currency liquidity, and templates/periodicities for supervisory reporting.
The objective is to strengthen banks’ liquidity resilience, improve market discipline through standardized disclosures and supervisory oversight, and ensure prudent management of funding and interest-rate risks across business cycles and currencies.
[Notification No. DOR.LRG.No.82/13-10-001/2025-26]
