Home › Circulars › RBI/2020-21/109

LEF: Non-centrally cleared derivatives limit deferment extended

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2020-21/109 · issued 23 Mar 2021 · ~1 min read
Quick answerRBI has deferred the applicability of exposure limits on non-centrally cleared derivatives under the Large Exposures Framework until September 30, 2021, giving banks more time to adjust their derivative portfolios.

What changed

The RBI has extended the deferment of exposure limits for non-centrally cleared derivatives under the Large Exposures Framework (LEF) from the previous deadline to September 30, 2021. This means these derivatives will continue to be excluded from the LEF exposure limits until that date.

What it means for you

Banks can maintain their current levels of non-centrally cleared derivatives without worrying about breaching LEF limits for now. This provides operational relief and time to align risk management systems with future requirements, but banks should prepare for eventual compliance post-September 2021.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Scheduled Commercial Banks (excluding Small Finance Banks, Payments Banks, Local Area Banks, and Regional Rural Banks)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What exactly is being deferred?

The application of exposure limits under the Large Exposures Framework (LEF) to non-centrally cleared derivatives is deferred until September 30, 2021.

Does this affect all banks?

No, it applies to all Scheduled Commercial Banks except Small Finance Banks, Payments Banks, Local Area Banks, and Regional Rural Banks.

What should banks do in the meantime?

Banks should use this period to review their derivative exposures and prepare systems for eventual compliance with LEF limits after the deferment ends.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #321: DOR.No.CRE.BC.47/21.01.003/2020-21 — "Large Exposures Framework - Deferment of Applicability of Limits on Non-Centrally Cleared Derivatives Exposures" dated Ma”
📜 Read the original circular — full text as issued by RBI
RBI/2020-21/109 DOR.No.CRE.BC.47/21.01.003/2020-21 March 23, 2021 All Scheduled Commercial Banks (Excluding Small Finance Banks, Payments Banks Local Area Banks and Regional Rural Banks) Dear Sir/Madam, Large Exposures Framework – Deferment of applicability of limits on non-centrally cleared derivatives exposures Please refer to circular No.DOR.No.BP.BC.43/21.01.003/2019-20 dated March 23, 2020 on Large Exposures Framework (LEF). 2. On a review it has been decided that non-centrally cleared derivatives exposures will continue to be outside the purview of exposure limits till September 30, 2021. Yours faithfully, (Manoranjan Mishra) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/109 · issued 23 Mar 2021. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12041&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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