RBI issues Amendment Directions on 'Standardised Approach for Counterparty Credit Risk (SA-CCR)’
In short
The Reserve Bank of India on Thursday released the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Amendment Directions, 2026, after issuing draft Amendment Directions on the Standardised Approach for Counterparty Credit Risk on June 10, 2026 and inviting feedback until July 1, 2026. The draft proposed changes to capital-charge instructions for counterparty credit risk, including the scope of CCR for banking and trading book exposures, treatment of multiple margin agreements and multiple netting sets, guidance for banks acting as clearing members of SEBI-recognised stock exchanges in equity derivatives and commodity derivatives, deferment of option premium, computation of effective notional for options, and disclosure templates for SA-CCR. In simple terms, the RBI has finalized updated rules on how banks measure and report the credit risk they face from derivatives and similar trades, including clearer treatment of exchange-clearing and margin arrangements. The Reserve Bank said the final instructions will come into effect from April 1, 2027.
Why it matters
A binding instrument: this is the text that regulated entities must actually comply with. The operative details are the applicability clause (who it binds) and the effective date (from when) — both of which are in the document and rarely in coverage of it. This classification and note were written here from Reserve Bank of India's own published document.