RBI invites feedback by July 1 on banks' counterparty risk
The Reserve Bank of India (RBI) is updating its guidelines for how banks handle counterparty credit risk: the risk that the other side of a financial deal won't hold up their end.
It is asking banks, market players, and anyone interested to share feedback by July 1, 2026, to make sure the rules fit today's market realities.
Draft details margins netting options disclosures
The draft tweaks spell out how banks should manage credit risk in both trading and regular banking activities.
There are clearer rules for things like margin agreements, netting sets (basically grouping deals together), and what banks can do as clearing members for transactions where a bank acts as a clearing member of SEBI-recognised stock exchanges in the equity derivatives and commodity derivatives segments.
The RBI also wants better guidance on handling option premiums, computing effective notional for options, and more detailed disclosure templates, all aimed at making things more transparent and up-to-date.