{"id":369165,"date":"2025-12-08T16:30:53","date_gmt":"2025-12-08T11:00:53","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=369165"},"modified":"2025-12-08T16:11:33","modified_gmt":"2025-12-08T10:41:33","slug":"rbi-issues-concentration-risk-management-amendment-2025","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/12\/08\/rbi-issues-concentration-risk-management-amendment-2025\/","title":{"rendered":"RBI Revises Large Exposures and Intragroup Transactions Guidelines"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 4-12-2025, the Reserve Bank of India (&#8216;RBI&#8217;) issued a notification announcing amendments to the <span style=\"font-weight: bold;\">Large Exposures Framework (&#8216;LEF&#8217;)<\/span> and <span style=\"font-weight: bold;\">Intragroup Transactions &amp; Exposures (&#8216;ITE&#8217;)<\/span>. These changes represent a significant step toward consolidating regulations, addressing prudential gaps in the treatment of foreign bank branch exposures, and enhancing methodological clarity for banks.<\/p>\n<h3>Key Highlights:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>Earlier, on 29-9-2025, RBI released draft amendment circulars, seeking stakeholders feedback, on:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p><a href=\"https:\/\/www.rbi.org.in\/Scripts\/bs_viewcontent.aspx?Id=4721\" target=\"_blank\">Large Exposures Framework (&#8216;LEF&#8217;) (Amendment Circular), 2025<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.rbi.org.in\/Scripts\/bs_viewcontent.aspx?Id=4722\" target=\"_blank\">Guidelines on Management of Intragroup Transactions and Exposures (&#8216;ITE&#8217;) (Amendment Circular), 2025<\/a><\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>The amendments proposed primarily addressed the prudential treatment of exposures of foreign bank branches in India to their head office and group entities.<\/p>\n<\/li>\n<li>\n<p>After close analysis of feedback received, RBI has now issued the <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=13196&amp;Mode=0\" target=\"_blank\">Commercial Banks &#8212; Concentration Risk Management Amendment Directions, 2025<\/a>.<\/p>\n<\/li>\n<li>\n<p>These Directions clarify methodological aspects of calculating LEF and ITE.<\/p>\n<\/li>\n<li>\n<p>The Directions aim to strengthen risk management practices and ensure consistency in regulatory treatment across foreign bank branches.<\/p>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">RBI has issued Amendments to LEF and ITE Frameworks through the Commercial Banks &#8212; Concentration Risk Management Amendment Directions, 2025, clarifying prudential treatment and strengthening risk practices.<\/p>\n","protected":false},"author":67525,"featured_media":369166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[94400,82743,94401,94403,94398,94399,94396,94397,94402,2611,2732,5321],"class_list":["post-369165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-concentration-risk-management","tag-financial-regulation","tag-foreign-bank-branches","tag-india-banking-sector","tag-intragroup-transactions","tag-ite","tag-large-exposures-framework","tag-lef","tag-prudential-treatment","tag-RBI","tag-Reserve_Bank_of_India","tag-risk-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>RBI Issues Concentration 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