India, June 11 -- The Reserve Bank of India (RBI) has released draft amendment directions on the Standardised Approach for Counterparty Credit Risk (SA-CCR) and invited comments from regulated entities, market participants, and other stakeholders until July 1, 2026.

The proposed framework aims to replace the existing Current Exposure Method (CEM) used by banks for calculating counterparty credit risk exposure arising from derivative transactions. While RBI had issued SA-CCR-based guidelines in 2016, their implementation was deferred. The latest draft incorporates significant legal, regulatory, and market developments that have taken place since then.

Key changes proposed in the revised framework include greater clarity on the scope of cou...