The extant instructions require Local Area Banks (LABs) to maintain, on a continuous basis, a minimum level of IFR, computed in terms of the portion of their investment portfolio subject to mark-to-market requirements. Considering that LABs already maintain capital charge for market risk and also follow revised norms on classification, valuation, and operation of investment portfolio, the Reserve Bank has comprehensively reviewed these instructions. Accordingly, Draft Amendment Directions have been issued for public comments. Additional comments or any attachments may also be submitted by email at mrgdor@rbi.org.in Last date for submission of comments is April 29, 2026. Draft Amendment Directions |