Recent changes have been introduced in the final guidelines related to capital charge requirements for loans. As part of these revisions, the risk limit applicable to personal loans has been increased from Rs 7.5 crore to Rs 10 crore. As a result, personal loans up to this revised limit will now qualify for a lower risk weight, provided other eligibility conditions are met.

These changes follow multiple requests seeking an enhancement of the maximum total loan risk threshold. Accepting these representations, the regulator clarified that the eligible loan amount for classification under the regulatory retail category has now been raised to Rs 10 crore. This revised framework is scheduled to come into effect from April 1, 2027.

In addition to personal loans, the credit exposure limit applicable to large unrated corporate borrowers and non-banking financial entities has also been significantly increased. The proposed threshold has been revised upward from Rs 200 crore to Rs 500 crore, offering greater flexibility to lenders in extending credit to such entities.

Further, new reporting requirements have been introduced to improve transparency in the foreign exchange derivatives market. Banks have been directed to report all over-the-counter foreign exchange derivative transactions involving the domestic currency to a centralized trade repository. These reporting norms have been issued with the objective of strengthening oversight and improving market transparency.

Over-the-counter derivatives refer to financial contracts that are executed directly between two parties, rather than through a formal stock exchange. This category also includes transactions carried out on electronic trading platforms. Banks authorized to deal in foreign exchange are required to report all domestic-currency-denominated derivative transactions conducted by their overseas branches, regardless of whether these transactions are cash-settled or non-cash-settled.

However, certain relaxations have been provided under the revised framework. Transactions valued up to USD 1 million or its equivalent are exempt from reporting. In addition, transactions conducted under back-to-back arrangements and transactions between domestic branches of authorized foreign exchange banks are also excluded from the reporting requirement.

A phased implementation schedule has been laid out for compliance with the new reporting norms. From July 1, 2027, banks will be required to report all such transactions undertaken by their parent entity and its branches. For transactions involving other related parties, reporting thresholds have been fixed in stages—70 percent by July 2027, 80 percent by January 2028, and full reporting compliance of 100 percent by July 2028.

These measures are intended to balance improved regulatory oversight with operational flexibility, while gradually enhancing transparency and risk monitoring across lending and derivative markets.