RBI issues fifth amendment to prudential norms on capital adequacy for AIFIs

AI-assisted source summary · not independently verified. Content standards

The Reserve Bank of India (RBI) issued the fifth amendment to the prudential norms on capital adequacy for AIFIs, revising the capital measurement requirements for financial institutions that are clearing members in respect of exposures to QCCP transactions. When an AIFI clears for its own purposes or provides clearing services to clients and assumes the obligation to make good losses arising from a QCCP default, a 2% risk weight applies to the relevant OTC derivatives, exchange traded derivatives and SFT exposures. The amended guidelines take effect from the date of issuance.