{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md13137","title":"Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Directions, 2025","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13137","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Commercial banks","class_code":"SCB","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13137","mode":"four_dates_v1","published":{"label":"Published","value":"Nov 28, 2025","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"July 1, 2021","stated":true,"why":"The day this rule starts to apply, as RBI's own text states it."},"transition":{"label":"Time to get ready","value":"None","stated":true,"why":"The start date RBI gave is before the day this document was published."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md13137.json","effective":"data/date_kinds.json kind=effective_date","transition":"worked out from published and starts-to-apply","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13137","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:14:57 UTC","text_sha256":"ebd471c6d42f4fb4dc1f0494cd4043e21c3c22e6247c3389cbdd9364199e750b","word_count":28221,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":76,"points_naming_an_rbi_paragraph":76,"points_stored":76,"actions":0,"amendments":0},"points":[{"n":1,"claim":"md13137-215ad60d","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Start date not set","plain_english":"The effective date of these directions will be communicated separately by RBI.","rbi_paragraph":"Para 2","rbi_char_offset":4251,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p1","layer":"bankpulse"},{"n":2,"claim":"md13137-181fb183","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"The rules will bind commercial banks; small finance, payments, local area and regional rural banks are excluded.","rbi_paragraph":"Para 3","rbi_char_offset":4494,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p2","layer":"bankpulse"},{"n":3,"claim":"md13137-b82d536e","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Four rulebooks in one","plain_english":"These directions bring four pending rule sets into one book.","rbi_paragraph":"Para 6","rbi_char_offset":6003,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p3","layer":"bankpulse"},{"n":1,"claim":"md13137-483d9478","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"One sided margin ignored","plain_english":"A margin deal where the bank only posts and never collects counts as unmargined.","rbi_paragraph":"Para 10(3)","rbi_char_offset":10566,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p4","layer":"bankpulse"},{"n":2,"claim":"md13137-1c52e95f","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Cost of replacing trades","plain_english":"Without margin, the replacing cost is market value less trimmed collateral, never below zero.","rbi_paragraph":"Para 11(1)","rbi_char_offset":11376,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p5","layer":"bankpulse"},{"n":3,"claim":"md13137-5c544e47","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Future risk never zero","plain_english":"The future exposure multiplier falls with excess collateral but never below 5 per cent.","rbi_paragraph":"Para 12(4)","rbi_char_offset":17141,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p6","layer":"bankpulse"},{"n":4,"claim":"md13137-2b8e5b1b","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Where the formula applies","plain_english":"The new approach covers over the counter, exchange traded and long settlement derivatives.","rbi_paragraph":"Para 7","rbi_char_offset":6339,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p7","layer":"bankpulse"},{"n":5,"claim":"md13137-ba479eaa","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Not for security lending","plain_english":"It does not cover lending against securities; those follow the capital rules.","rbi_paragraph":"Para 7","rbi_char_offset":6552,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p8","layer":"bankpulse"},{"n":6,"claim":"md13137-cbcebb15","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Netting needs a contract","plain_english":"Trades can be set off only under a binding two way contract; without one, every trade stands alone.","rbi_paragraph":"Para 9","rbi_char_offset":8113,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p9","layer":"bankpulse"},{"n":7,"claim":"md13137-722c0237","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"THE CORE IDEA","heading":"One formula for exposure","plain_english":"Derivative exposure at default is 1.4 times replacement cost plus potential future exposure.","rbi_paragraph":"Para 9","rbi_char_offset":8260,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p10","layer":"bankpulse"},{"n":8,"claim":"md13137-e078f16e","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Margined capped by unmargined","plain_english":"A margined netting set's exposure is capped at its unmargined calculation.","rbi_paragraph":"Para 10(3)","rbi_char_offset":10840,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p11","layer":"bankpulse"},{"n":9,"claim":"md13137-7485048c","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Margined cost formula","plain_english":"For margined trades the cost also counts the threshold and minimum transfer amount before a margin call.","rbi_paragraph":"Para 11(6)","rbi_char_offset":14688,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p12","layer":"bankpulse"},{"n":10,"claim":"md13137-2b77596e","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Three asset classes","plain_english":"Each trade goes to interest rate, foreign exchange or credit by its main risk driver.","rbi_paragraph":"Para 12(7)","rbi_char_offset":18458,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":["foreign-exchange"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p13","layer":"bankpulse"},{"n":11,"claim":"md13137-f3913e79","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Sets that can offset","plain_english":"Offsetting works per currency for interest rates, per currency pair for exchange, and in one credit set.","rbi_paragraph":"Para 12(12)","rbi_char_offset":20896,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p14","layer":"bankpulse"},{"n":12,"claim":"md13137-68dfa052","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Volatility trades cost five","plain_english":"For volatility trade sets the supervisory factor multiplies by five; basis trade sets take half.","rbi_paragraph":"Para 12(24)","rbi_char_offset":32677,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p15","layer":"bankpulse"},{"n":13,"claim":"md13137-f999fc48","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Disputes double the horizon","plain_english":"Repeated long margin disputes double the margin period of risk for that netting set.","rbi_paragraph":"Para 12(28)","rbi_char_offset":34150,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p16","layer":"bankpulse"},{"n":14,"claim":"md13137-dadb03c6","page_group":"Chapter II. Computing Exposure for Counterparty Credit Risk arising from Derivative Transactions","stored_section":"WHAT CHANGES","heading":"Sold options cost nothing","plain_english":"A sold option outside netting and margin agreements carries zero exposure.","rbi_paragraph":"Para 12","rbi_char_offset":43920,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p17","layer":"bankpulse"},{"n":1,"claim":"md13137-990e56af","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"KEY DATES","heading":"Three months of grace","plain_english":"Trades with a house that loses qualifying status keep the old treatment at most three months.","rbi_paragraph":"Para 18(6)","rbi_char_offset":48579,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A clearing house loses its qualifying status on 1 March. Trades already with it keep the old treatment for a period not exceeding three months. From 1 June the old treatment ends.","anchor":"https://bankpulse.ai/rule/md13137#p18","layer":"bankpulse"},{"n":2,"claim":"md13137-9d2b0af6","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Clearing house at two","plain_english":"A clearing member's trade exposure to a qualifying clearing house weighs just two per cent.","rbi_paragraph":"Para 19(1)","rbi_char_offset":48953,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p19","layer":"bankpulse"},{"n":3,"claim":"md13137-0bd3d35f","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Client route at four","plain_english":"A client unprotected against the joint default of member and another client weighs four per cent.","rbi_paragraph":"Para 19(4)","rbi_char_offset":55994,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p20","layer":"bankpulse"},{"n":4,"claim":"md13137-29ab2a24","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Non qualifying costs 1250","plain_english":"Default fund money at a non qualifying clearing house weighs 1250 per cent, unfunded promises included.","rbi_paragraph":"Para 20","rbi_char_offset":67848,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p21","layer":"bankpulse"},{"n":5,"claim":"md13137-e97fd5fb","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"A clearing house is financial","plain_english":"For capital purposes a clearing house counts as a financial institution.","rbi_paragraph":"Para 17","rbi_char_offset":46359,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p22","layer":"bankpulse"},{"n":6,"claim":"md13137-8b042500","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHO SHOULD ACT","heading":"Watch clearing exposures","plain_english":"All clearing house exposures, default fund included, reach senior management at least quarterly.","rbi_paragraph":"Para 18(5)","rbi_char_offset":48198,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p23","layer":"bankpulse"},{"n":7,"claim":"md13137-4efe9083","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Safe custody costs nothing","plain_english":"Collateral parked safely with a keeper, out of reach of failure, needs no extra capital.","rbi_paragraph":"Para 19(10)","rbi_char_offset":58057,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p24","layer":"bankpulse"},{"n":8,"claim":"md13137-59f1cda3","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Default funds by formula","plain_english":"Contributions to a qualifying clearing house's default fund take a risk sensitive formula the house itself computes.","rbi_paragraph":"Para 19(13)","rbi_char_offset":60851,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p25","layer":"bankpulse"},{"n":9,"claim":"md13137-f92f4334","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHO SHOULD ACT","heading":"Formulas refreshed quarterly","plain_english":"The clearing house capital figures are recalculated at least quarterly, and on material change.","rbi_paragraph":"Para 19(4)","rbi_char_offset":66874,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p26","layer":"bankpulse"},{"n":10,"claim":"md13137-d40890ba","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Capital times twelve and half","plain_english":"Computed capital converts to risk weighted assets by multiplying by 12.5.","rbi_paragraph":"Para 19(4)","rbi_char_offset":67232,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p27","layer":"bankpulse"},{"n":11,"claim":"md13137-2841e4a7","page_group":"Chapter III. Capital Requirement for Exposures to Central Counterparties (CCPs)","stored_section":"WHAT CHANGES","heading":"Walkaway kills netting","plain_english":"A contract letting the survivor underpay a defaulter's estate gets no netting benefit.","rbi_paragraph":"Para 21(2)","rbi_char_offset":72181,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p28","layer":"bankpulse"},{"n":1,"claim":"md13137-e5da79d6","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Three size buckets","plain_english":"Coefficients rise with size through three buckets: 12, then 15, then 18 per cent.","rbi_paragraph":"Para 30","rbi_char_offset":83459,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p29","layer":"bankpulse"},{"n":2,"claim":"md13137-5c880d9b","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Ten years of loss data","plain_english":"The loss average uses 10 years of high quality yearly loss data.","rbi_paragraph":"Para 32","rbi_char_offset":84310,"weight":"MUST KNOW","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p30","layer":"bankpulse"},{"n":3,"claim":"md13137-8f0a2ffd","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Five years at minimum","plain_english":"A bank with only five or more years of loss data uses what it has.","rbi_paragraph":"Para 32","rbi_char_offset":84453,"weight":"MUST KNOW","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p31","layer":"bankpulse"},{"n":4,"claim":"md13137-cce4b6b8","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"One lakh is the floor","plain_english":"Every operational loss event of ₹1,00,000 or more, net of recoveries, enters the loss data.","rbi_paragraph":"Para 39(1)","rbi_char_offset":95145,"weight":"MUST KNOW","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p32","layer":"bankpulse"},{"n":5,"claim":"md13137-181c6f6f","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Missed losses come back","plain_english":"A missed loss event, once found, enters the data and stays ten years from detection.","rbi_paragraph":"Para 39(2)","rbi_char_offset":107907,"weight":"MUST KNOW","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p33","layer":"bankpulse"},{"n":6,"claim":"md13137-5aa4dbde","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Merged losses come along","plain_english":"A merged or bought business brings its past ten years of losses into the calculation at once.","rbi_paragraph":"Para 40","rbi_char_offset":109105,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p34","layer":"bankpulse"},{"n":7,"claim":"md13137-4b9ccca1","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Three years before dropping","plain_english":"A loss may leave the data only after at least three years inside it.","rbi_paragraph":"Para 41(2)","rbi_char_offset":111264,"weight":"MUST KNOW","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p35","layer":"bankpulse"},{"n":8,"claim":"md13137-cc83fd8a","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT IT REPLACES","heading":"Old measure retired","plain_english":"The basic indicator approach for operational risk retires when these directions take effect.","rbi_paragraph":"Para 22","rbi_char_offset":72632,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p36","layer":"bankpulse"},{"n":9,"claim":"md13137-80db7cca","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"No parallel run","plain_english":"Banks need not run the old and new operational risk sums side by side.","rbi_paragraph":"Para 23","rbi_char_offset":73171,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p37","layer":"bankpulse"},{"n":10,"claim":"md13137-6d9d130d","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"THE CORE IDEA","heading":"What operational risk is","plain_english":"Operational risk is loss from failed processes, people, systems or outside events, legal risk included.","rbi_paragraph":"Para 25(3)","rbi_char_offset":73872,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p38","layer":"bankpulse"},{"n":11,"claim":"md13137-a415dea2","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"THE CORE IDEA","heading":"Three building blocks","plain_english":"The new charge builds from a business indicator, its coefficient component, and an internal loss multiplier.","rbi_paragraph":"Para 26(1)","rbi_char_offset":74715,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p39","layer":"bankpulse"},{"n":12,"claim":"md13137-de8fada2","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"The indicator's three parts","plain_english":"The indicator adds three parts: interest and dividend, services, and the trading result.","rbi_paragraph":"Para 27","rbi_char_offset":75169,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p40","layer":"bankpulse"},{"n":13,"claim":"md13137-68027af9","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Higher of two windows","plain_english":"Banks compute the indicator on both financial year and rolling quarter bases and use the higher.","rbi_paragraph":"Para 28","rbi_char_offset":76368,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p41","layer":"bankpulse"},{"n":14,"claim":"md13137-0c3fa337","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Losses scale the charge","plain_english":"The internal loss multiplier builds on 15 times the bank's average yearly operational losses.","rbi_paragraph":"Para 31","rbi_char_offset":84143,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p42","layer":"bankpulse"},{"n":15,"claim":"md13137-6b972b91","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Small banks skip the multiplier","plain_english":"A bucket one bank simply holds its indicator component: no loss multiplier applies.","rbi_paragraph":"Para 33","rbi_char_offset":85295,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p43","layer":"bankpulse"},{"n":16,"claim":"md13137-4acc19a8","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Fraud in loans stays out","plain_english":"A loss already counted in loan capital stays out of this loss data.","rbi_paragraph":"Para 39(1)","rbi_char_offset":97992,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p44","layer":"bankpulse"},{"n":17,"claim":"md13137-ce260915","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Trading errors stay in","plain_english":"Operational losses in trading, like wrong key strokes or algorithm crashes, count in the loss data.","rbi_paragraph":"Para 39(1)","rbi_char_offset":98895,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p45","layer":"bankpulse"},{"n":18,"claim":"md13137-26ce3da5","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Received, not promised","plain_english":"A recovery counts only after the money arrives; receivables do not count.","rbi_paragraph":"Para 39(2)","rbi_char_offset":100101,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p46","layer":"bankpulse"},{"n":19,"claim":"md13137-7716de42","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHAT CHANGES","heading":"Provisions count at once","plain_english":"A provision made for an operational loss counts as loss immediately, topped up later if the settlement is bigger.","rbi_paragraph":"Para 39(2)","rbi_char_offset":101170,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p47","layer":"bankpulse"},{"n":20,"claim":"md13137-9e5cd13c","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHO SHOULD ACT","heading":"One event, one entry","plain_english":"Losses sharing one underlying cause group into a single loss event.","rbi_paragraph":"Para 39(2)","rbi_char_offset":106052,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p48","layer":"bankpulse"},{"n":21,"claim":"md13137-04b05ebd","page_group":"Chapter IV. Minimum Capital Requirements for Operational Risk","stored_section":"WHO SHOULD ACT","heading":"Dropping losses needs RBI","plain_english":"Excluding a loss needs RBI approval and a size above 5% of the average losses.","rbi_paragraph":"Para 41(2)","rbi_char_offset":111090,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p49","layer":"bankpulse"},{"n":1,"claim":"md13137-e7ea215e","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"KEY DATES","heading":"Reporting starts before the start","plain_english":"Even before the start date, banks report the shock results to RBI yearly in the fixed format.","rbi_paragraph":"Para 49","rbi_char_offset":114708,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p50","layer":"bankpulse"},{"n":2,"claim":"md13137-0d59c1cc","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Never one measure","plain_english":"A bank may never rely on a single measure of interest rate risk.","rbi_paragraph":"Para 71","rbi_char_offset":136428,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p51","layer":"bankpulse"},{"n":3,"claim":"md13137-b8db9f2a","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"THE CORE IDEA","heading":"The outlier line","plain_english":"A bank losing over 15 per cent of Tier 1 capital in any scenario is an outlier facing supervisory action.","rbi_paragraph":"Para 83","rbi_char_offset":145076,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p52","layer":"bankpulse"},{"n":4,"claim":"md13137-a6cf2745","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Small currencies grouped","plain_english":"Currencies under five per cent of global assets or liabilities share the largest residual currency's shock.","rbi_paragraph":"Para 89","rbi_char_offset":151498,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p53","layer":"bankpulse"},{"n":5,"claim":"md13137-a19cc398","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"A written risk appetite","plain_english":"A board approved risk appetite statement must limit the risk in both economic value and earnings terms.","rbi_paragraph":"Para 54","rbi_char_offset":122677,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p54","layer":"bankpulse"},{"n":6,"claim":"md13137-fdf16553","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Reverse tests too","plain_english":"Banks must also run reverse stress tests to find the scenarios that would truly hurt.","rbi_paragraph":"Para 69","rbi_char_offset":135855,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p55","layer":"bankpulse"},{"n":7,"claim":"md13137-5748a01a","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT IT REPLACES","heading":"Gap analysis retires later","plain_english":"Today's gap analysis methods phase out only after these directions take effect.","rbi_paragraph":"Para 50","rbi_char_offset":116044,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p56","layer":"bankpulse"},{"n":8,"claim":"md13137-bb6bc539","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"The board owns rate risk","plain_english":"The board owns banking book interest rate risk.","rbi_paragraph":"Para 53","rbi_char_offset":121317,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p57","layer":"bankpulse"},{"n":9,"claim":"md13137-9da942a9","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Delegation allowed","plain_english":"The board may delegate the monitoring to the asset liability committee.","rbi_paragraph":"Para 53","rbi_char_offset":121751,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p58","layer":"bankpulse"},{"n":10,"claim":"md13137-7d547d89","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"New products tested first","plain_english":"Products new to the bank face a careful review and test phase before full rollout.","rbi_paragraph":"Para 55","rbi_char_offset":124240,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p59","layer":"bankpulse"},{"n":11,"claim":"md13137-9337f60b","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Stress tests steer capital","plain_english":"Interest rate stress testing feeds the bank's internal capital assessment and board decisions.","rbi_paragraph":"Para 66","rbi_char_offset":132423,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p60","layer":"bankpulse"},{"n":12,"claim":"md13137-8bc90921","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Models validated independently","plain_english":"Risk models are validated independently before use and reviewed on an ongoing cycle.","rbi_paragraph":"Para 75","rbi_char_offset":140756,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p61","layer":"bankpulse"},{"n":13,"claim":"md13137-beb331d6","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Vendor models included","plain_english":"Bought models and vendor inputs face the same validation and documentation duties.","rbi_paragraph":"Para 76","rbi_char_offset":141185,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p62","layer":"bankpulse"},{"n":14,"claim":"md13137-b360f63e","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Persistent gaps, RBI's method","plain_english":"If deficiencies persist, RBI can force the bank onto the prescribed standard calculation.","rbi_paragraph":"Para 77","rbi_char_offset":142270,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p63","layer":"bankpulse"},{"n":15,"claim":"md13137-3ab090ea","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO SHOULD ACT","heading":"Half yearly board reports","plain_english":"The board hears interest rate risk summaries, limit compliance and stress results at least twice a year.","rbi_paragraph":"Para 85","rbi_char_offset":146749,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p64","layer":"bankpulse"},{"n":16,"claim":"md13137-610e8f4a","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Own equity stays out","plain_english":"Economic value calculations exclude the bank's own equity.","rbi_paragraph":"Para 87(1)","rbi_char_offset":148073,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p65","layer":"bankpulse"},{"n":17,"claim":"md13137-e45f0a5b","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Two balance sheet views","plain_english":"Economic value assumes a run off balance sheet; earnings assume a constant one.","rbi_paragraph":"Para 87(1)","rbi_char_offset":149328,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p66","layer":"bankpulse"},{"n":18,"claim":"md13137-84c4289f","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Six prescribed shocks","plain_english":"Six prescribed rate shock scenarios test economic value; two of them test earnings.","rbi_paragraph":"Para 88","rbi_char_offset":150083,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p67","layer":"bankpulse"},{"n":19,"claim":"md13137-f9cbd7c8","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"The rupee shock sizes","plain_english":"For the rupee the shocks are 250 points parallel, 300 short and 200 long.","rbi_paragraph":"Para 89","rbi_char_offset":151029,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p68","layer":"bankpulse"},{"n":20,"claim":"md13137-d164ff2c","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Nineteen time buckets","plain_english":"Cash flows slot into 19 predefined time buckets by repricing date.","rbi_paragraph":"Para 92(1)","rbi_char_offset":156269,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p69","layer":"bankpulse"},{"n":21,"claim":"md13137-788f08ee","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Floating rates reset once","plain_english":"A floating rate position reprices fully at its first reset date, principal and all.","rbi_paragraph":"Para 92(3)","rbi_char_offset":156908,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p70","layer":"bankpulse"},{"n":22,"claim":"md13137-c076b7f2","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Sticky deposits capped","plain_english":"Sticky deposit shares and their assumed life are capped for each deposit type.","rbi_paragraph":"Para 95(2)","rbi_char_offset":160815,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p71","layer":"bankpulse"},{"n":23,"claim":"md13137-7609ac55","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHO IT APPLIES TO","heading":"Small firms count as retail","plain_english":"Deposits of small businesses up to 7.5 crores, managed as retail, count as retail deposits.","rbi_paragraph":"Para 95(2)","rbi_char_offset":161278,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p72","layer":"bankpulse"},{"n":24,"claim":"md13137-9aa58e09","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Prepayment swings by scenario","plain_english":"Loan prepayment speeds scale by 0.8 or 1.2 depending on the direction of the rate shock.","rbi_paragraph":"Para 95(4)","rbi_char_offset":165620,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p73","layer":"bankpulse"},{"n":25,"claim":"md13137-75c1df6a","page_group":"Chapter V. Governance, Measurement and Management of Interest Rate Risk in Banking Book","stored_section":"WHAT CHANGES","heading":"Penalty free exits count","plain_english":"A term deposit without a compensating exit penalty is treated as carrying early withdrawal risk.","rbi_paragraph":"Para 95(5)","rbi_char_offset":166668,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":["deposit-account"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p74","layer":"bankpulse"},{"n":1,"claim":"md13137-bd87e77f","page_group":"Chapter VI. Repeal and Other provisions","stored_section":"WHAT IT REPLACES","heading":"Old guidance repealed","plain_english":"The earlier instructions on these four subjects stand repealed from the day these directions arrived.","rbi_paragraph":"Para 98","rbi_char_offset":176349,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p75","layer":"bankpulse"},{"n":2,"claim":"md13137-1079c38d","page_group":"Chapter VI. Repeal and Other provisions","stored_section":"WHAT IT REPLACES","heading":"Old actions stay governed","plain_english":"Action already taken under the old rules stays governed by them.","rbi_paragraph":"Para 99","rbi_char_offset":176753,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13137#p76","layer":"bankpulse"}],"actions":[],"amendments":[],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}