India, May 19 -- The Reserve Bank of India has decided not to activate the Counter-Cyclical Capital Buffer (CCyB) requirement at the current stage following a review of macro-financial conditions and related indicators.
Under the RBI's capital adequacy framework, the CCyB mechanism is intended to strengthen banks' resilience during periods of excessive credit growth and is activated when warranted by prevailing economic and financial conditions.
The central bank said its assessment was based on empirical analysis of various CCyB indicators, including the credit-to-GDP gap, which serves as the primary metric under the framework, along with other supplementary indicators.
Based on the review, the RBI concluded that there is no immediate ne...