Economy
RBI Sets 2% Risk Weight for AIFI Clearing Exposures
RBI has amended capital adequacy norms, applying a 2% risk weight to specified AIFI exposures to qualified central counterparties.
What happened
The Reserve Bank of India amended its 2025 prudential norms for All India Financial Institutions, effective October 7, 2026. The amendment applies a 2% risk weight to an AIFI’s trade exposure to a qualified central counterparty for OTC derivatives, exchange-traded derivatives and securities financing transactions. The treatment also covers client clearing where the AIFI must reimburse losses after a counterparty default.
Why it matters
The amendment gives AIFIs a defined capital-adequacy treatment for qualifying clearing exposures and aligns the rules with international standards.
Source: RBI Notifications