New Delhi [India], September 22 : The Reserve Bank of India (RBI) on Thursday announced the issuance of the Reserve Bank of India (Prudential Regulations on Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation and Operation of Investment Portfolio Norms and Resource Raising Norms for All India Financial Institutions) Directions, 2023.
These directions are set to govern the operations of five prominent All India Financial Institutions (AIFIs), namely Export-Import Bank of India (EXIM) Bank, National Bank for Agriculture and Rural Development (NABARD), National Bank for Financing Infrastructure and Development (NABFID), National Housing Bank (NHB), and Small Industries Development Bank of India (SIDBI).
RBI posted on X,” Reserve Bank of India (Prudential Regulations on Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation and Operation of Investment Portfolio Norms and Resource Raising Norms for All India Financial Institutions) Directions, 2023 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56410”
The release of these directions follows a period of consultation with the public, as the draft Directions were made available for public comments on October 22, 2021.
The final directions have been issued after careful consideration, taking into account the feedback received from stakeholders.
These newly issued directions will come into effect on April 1, 2024, and are designed to ensure that AIFIs adhere to prudential regulations that align with the Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation, Operation of Investment Portfolio Norms, and Resource Raising Norms.
By setting these standards, the RBI aims to promote financial stability, protect the interests of depositors and investors, and maintain the overall health of the financial sector.
These regulatory measures are part of RBI's ongoing efforts to enhance the resilience and efficiency of India's financial institutions, fostering a secure and reliable financial environment in the country.
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