The Reserve Bank of India had, on September 29, 2025, issued two draft amendment circulars, viz.: (i) Large Exposures Framework (Amendment Circular), 2025; and (ii) Guidelines on Management of Intragroup Transactions and Exposures (Amendment Circular), 2025 seeking feedback from stakeholders. The amendment directions were aimed primarily at rationalising certain extant provisions relating to treatment of exposures of foreign bank branches in India to their head office and other group entities. 2. Feedback received on the above drafts has been examined and the consequent modifications, as decided by the Reserve Bank, have been suitably incorporated in the final Amendment Directions and are being issued today. A statement on the feedback received for the draft Directions is provided in the Annex. 3. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025. 4. Objective of these Amendment Directions is to clarify regarding prudential treatment of exposures of foreign bank branches operating in India to their group entities, and certain methodological aspects relating to calculation of LEF and ITE. (Brij Raj)
Chief General Manager Press Release: 2025-2026/1630 | |