The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Directions, 2025, consolidating and formalising various Basel III–aligned regulatory frameworks whose implementation dates are yet to be notified. These Directions compile earlier issuances relating to counterparty credit risk, exposures to central counterparties, operational risk capital requirements, and interest rate risk in the banking book (IRRBB), thereby providing a comprehensive reference for banks pending operational rollout.
The Directions set out detailed methodologies including the Standardised Approach for Counterparty Credit Risk (SA-CCR), capital treatment for exposures to qualifying and non-qualifying CCPs, Basel III Standardised Approach for Operational Risk (Business Indicator, BIC, ILM, ORC), and governance, measurement, stress testing, and disclosure norms for IRRBB. While the Directions apply to all commercial banks except SFBs, PBs, LABs and RRBs, the RBI will communicate the effective implementation dates separately. Their objective is to ensure alignment with the most recent Basel Committee standards and to prepare the banking system for timely and smooth transition to advanced risk measurement expectations.
[Notification No. RBI/DoR/2025-26/173]
