The Reserve Bank of India (RBI) on Wednesday issued amendment directions relating to Counterparty Credit Risk (CCR), revising norms for add-on factors used in the computation of Potential Future Exposure (PFE).

The move follows a draft circular released on August 20, 2025, in which the RBI had sought feedback from banks and stakeholders. The draft proposed clarifications requiring banks acting as clearing members of SEBI-recognised stock exchanges in equity and commodity derivatives segments to maintain capital charge for CCR. It also proposed aligning add-on factors used under the Current Exposure Method (CEM) for interest rate contracts, exchange rate contracts, and gold with guidelines issued by the Basel Committee on Banking Supervision.

The central bank said feedback received from stakeholders has been examined and incorporated into the final amendment directions.

Accordingly, the RBI has issued amendment directions covering prudential norms on capital adequacy for multiple categories of regulated entities, including commercial banks, small finance banks, payments banks, and All India Financial Institutions.

The RBI stated that the amendments aim to provide greater clarity to regulated entities on aspects of the CCR framework while bringing domestic regulations largely in line with international standards.