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, while the margining framework has been implemented under the Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024. The Basel Committee on Banking Supervision (BCBS) has also, over time, issued various FAQs providing further clarity on the SA-CCR guidelines. 3. Considering the time elapsed and the recent legal and regulatory developments, the guidelines have been comprehensively reviewed. The key changes between the 2016 guidelines (currently part of the Commercial Banks – Forthcoming Instructions, Directions, 2025) and the proposed draft Directions include, inter alia, (i) clarification on the scope of CCR across both banking and trading book exposures, (ii) treatment of multiple margin agreements and multiple netting sets elaborated in view of the legal / regulatory developments in netting and margining guidelines, (iii) guidance on the treatment of transactions where a bank acts as a clearing member of SEBI-recognised stock exchanges in the equity derivatives and commodity derivatives segments, (iv) treatment for deferment of option premium, (v) guidance on computation of effective notional for options, and (vi) inclusion of disclosure templates for SA-CCR. 4. Accordingly, the Reserve Bank has today released the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Amendment Directions, 2026. 5. The comments on the draft Amendment Directions are invited from the Regulated Entities, market participants, and other interested parties till July 1, 2026. The comments / feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to The Chief General Manager
Market Risk Group
Department of Regulation, Central Office
Reserve Bank of India, 12th Floor
Shahid Bhagat Singh Marg
Fort, Mumbai – 400 001
Or
by email With the subject line ‘Feedback on ‘Standardised Approach for Counterparty Credit Risk (SA-CCR)’ (Brij Raj)
Chief General Manager Press Release: 2026-2027/430 |