The Reserve Bank of India has issued final amendment directions related to the Investment Fluctuation Reserve (IFR) framework after reviewing feedback received from stakeholders on the draft proposals.

Under the revised norms, the RBI has removed the IFR requirement for certain categories of banks that already maintain capital charge for market risk and follow the updated investment portfolio classification and valuation norms. The central bank has also allowed remaining regulated entities to comply with IFR requirements based on balance sheet dates instead of maintaining them continuously.

Additionally, the amendments aim to harmonise IFR-related regulations across different categories of regulated entities to remove inconsistencies and improve regulatory clarity.

The RBI has issued amendment directions covering commercial banks, small finance banks, payments banks, local area banks, urban and rural co-operative banks, and regional rural banks, along with changes relating to prudential norms on capital adequacy and financial statement disclosures.