RBI Seeks Comments on Draft CVA Framework Directions
The RBI has invited public comments on the draft Directions for the Credit Valuation Adjustment Framework
The Reserve Bank of India (RBI) has released the draft Reserve Bank of India (Commercial Banks – Credit Valuation Adjustment Framework) Directions, 2026. The draft Directions are open for public comments until August 28, 2026. The CVA framework was first introduced by the RBI in 2011, based on the Basel Committee on Banking Supervision (BCBS) standards issued in 2010. The revised framework permits banks to adopt the basic approach and allows them to choose between the full or reduced version. It also provides an option for banks with a low volume of non-centrally cleared derivatives to calculate their CVA capital charge as 100 per cent of their counterparty credit risk capital charge.