RBI Updates Banking Regulations, Issues Amendments On Exposures & Credit Reporting

The Reserve Bank of India (RBI) issued amendments to update various banking regulations. The changes include clarifications on the prudential treatment of foreign bank branches’ exposures to group entities and updates to the Large Exposures Framework (LEF) and Intragroup Transactions and Exposures (ITE) guidelines.

Banks are required to have policies for managing concentration risks towards single counterparties, interconnected groups, specific sectors, and ultra-large borrowers. The RBI also issued the Commercial Banks – Credit Facilities Amendment Directions, 2025, to streamline regulations for domestic and exporter jewellers and support a supervisory management system for gold metal loans. Additionally, 10 Amendment directions were released to enhance credit information reporting by banks and NBFCs, ensuring more frequent and accurate submission to Credit Information Companies, thereby improving the quality of credit information used in underwriting and monitoring.