MUMBAI, India, June 10 -- Reserve Bank of India issued the following press release:
The extant guidelines require the use of the Current Exposure Method (CEM) for the computation of Counterparty Credit Risk (CCR) exposure. In 2016, RBI issued final 'Guidelines for Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions' and 'Guidelines on Capital Requirements for Bank Exposures to Central Counterparties', both based on the Standardised Approach for Counterparty Credit Risk (SA-CCR), with an intended implementation date of April 1, 2018. However, the implementation of these guidelines was subsequently deferred.
2. Since then, the Bilateral Netting of Qualified Financial Contracts Act, 2020, has been enacted, wh...