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. Please refer to circular No.DBR.No.BP.BC.43/21.01.003/2018-19 dated June 03, 2019 on Large Exposures Framework (LEF)
- 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.
- • Exposures to foreign sovereigns or their central banks that are:
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
For full detail click below:
https://www.dropbox.com/s/txplphhsp3j2rsy/24th%20feb%20notification2.PDF?dl=0