BusinessRBI Bars Banks from Reclassifying Books to Lower Capital Needs
The Reserve Bank of India has prohibited banks from reclassifying instruments between trading and banking books to reduce capital requirements under its revised market risk framework. Effective April 1, 2027, the framework aligns with Basel III, mandates the Simplified Standardised Approach for risk-weighted assets, and revises interest rate risk treatment. It excludes small finance, payments, and local area banks.
Knn India·2d ago




