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RBI , Notification 2020-21 , Large Exposures Framework – Exemptions

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Feb 25, 2021 #RBI

February 24, 2021

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

Dear Sir/Madam,

Large Exposures Framework – Exemptions

  1. 1. Please refer to circular No.DBR.No.BP.BC.43/21.01.003/2018-19 dated June 03, 2019 on Large Exposures Framework (LEF)
  1. 2. Paragraph 3 of the Annex to the above circular specifies the exposures that are exempt from the LEF. On a review, it has been decided to further exempt the following exposures from the LEF:
    • • Exposures to foreign sovereigns or their central banks that are:
      • i. subject to a 0% risk weight under Table 2 of paragraph 5.3.1of the Master Circular – Basel III Capital Regulations dated July 1, 2015, as modified vide circular dated October 8, 2015; and,
      • ii. denominated in the domestic currency of that sovereign
      • and met out of resources of the same currency.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager

For full detail click below:

https://www.dropbox.com/s/txplphhsp3j2rsy/24th%20feb%20notification2.PDF?dl=0

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