RBI issues Credit Valuation Adjustment Framework Directions and SA-CCR amendments for commercial banks, effective from April 1, 2027

8 October 2026

On October 7, 2026 the Reserve Bank of India released the Reserve Bank of India (Commercial Banks - Credit Valuation Adjustment Framework) Directions, 2026.
The Directions set out instructions on the capital charge for Credit Valuation Adjustment risk for commercial banks.
Draft CVA Directions had been issued on August 7, 2026 and feedback was invited till August 28, 2026; the draft SA-CCR amendment directions had been issued on June 10, 2026 with feedback invited till July 1, 2026.
On the same day the Reserve Bank issued the Reserve Bank of India (Commercial Banks - Forthcoming Instructions) Amendment Directions, 2026 on the Standardised Approach for Counterparty Credit Risk.
The amendments clarify the scope of counterparty credit risk for banking book and trading book exposures and deal with multiple margin agreements and multiple netting sets.
They give guidance for transactions where a bank acts as a clearing member of SEBI-recognised stock exchanges in equity and commodity derivatives.
They also cover deferment of option premium, computation of effective notional for options, and disclosure templates for SA-CCR.
Both sets of instructions come into effect from April 1, 2027.