MANU/RMIC/0058/2019
Ministry : Reserve Bank of India
Department/Board : Department of Banking Regulation
Circular No. : DBR.No.BP.BC.43/21.01.003/2018-2019
RBI/2018-2019/196
Date : 03.06.2019
Notification/ Circulars Referred : Circulars DBR.No.BP.BC.43/21.01.003/2016-17 dated December 01, 2016 MANU/RMIC/0213/2016;DBR.No.BP.BC.31/21.01.003/2018-19 dated April 01, 2019 MANU/RMIC/0040/2019
Citing Reference:
Circulars DBR.No.BP.BC.43/21.01.003/2016-17 dated December 01, 2016 MANU/RMIC/0213/2016 Referred
DBR.No.BP.BC.31/21.01.003/2018-19 dated April 01, 2019 MANU/RMIC/0040/2019 Referred
All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir/Madam,
Large Exposures Framework
Please refer to the instructions contained in circulars DBR.No.BP.BC.43/21.01.003/2016-17 dated December 01, 2016 and DBR.No.BP.BC.31/21.01.003/2018-19 dated April 01, 2019 on "Large Exposures Framework (LEF)".
2. In order to capture exposures and concentration risk more accurately and to align the above instructions with international norms, the following amendments have been incorporated in the above mentioned instructions:
i) Exclusion of entities connected with the sovereign from definition of group of connected counterparties.
ii) Introduction of economic interdependence criteria in definition of connected counterparties.
iii) Mandatory application of look-through approach (LTA) in determination of relevant counterparties in case of collective investment undertakings, securitisation vehicles and other structures.