RBI allows banks meeting market risk standards to end IFR
Big update from the Reserve Bank of India (RBI): starting May 18, banks that already meet market risk standards no longer need to keep an Investment Fluctuation Reserve (IFR).
The money sitting in these reserves as of May 17 will be shifted to other accounts like statutory or general reserves, or even profit and loss, and will now count as top-tier capital for the banks.
Compliance checks on balance sheet dates
This isn't just for big commercial banks: now small finance banks, payments banks, co-ops, rural banks, and even foreign bank branches in India have to move their IFR balances too.
For many other financial institutions, checking compliance is now only needed on balance sheet dates instead of all the time.
The RBI says these changes should make things simpler across the board while still keeping things safe.