India, March 11 -- The Reserve Bank of India (RBI) on Wednesday issued amendment directions relating to Counterparty Credit Risk (CCR), revising norms for add-on factors used in the computation of Potential Future Exposure (PFE).
The move follows a draft circular released on August 20, 2025, in which the RBI had sought feedback from banks and stakeholders. The draft proposed clarifications requiring banks acting as clearing members of SEBI-recognised stock exchanges in equity and commodity derivatives segments to maintain capital charge for CCR. It also proposed aligning add-on factors used under the Current Exposure Method (CEM) for interest rate contracts, exchange rate contracts, and gold with guidelines issued by the Basel Committee on...