RBI Proposes New Norms For Classification, Valuation Of Banks' Investment Portfolio
NDTV
The new bank portfolio classification norms will come into effect from April 1, 2023, the RBI paper said, while inviting comments on a discussion paper in this regard from stakeholders by February 15.
The Reserve Bank of India (RBI) on Friday proposed new norms for the classification and valuation of the investment portfolio of banks, with a view to align them with the global prudential framework and accounting standards.
According to the proposed norms, the investment portfolio of banks will be divided into three categories — held-to-maturity (HTM), available for sale (AFS), and fair value through profit and loss account (FVTPL).
Within FVTPL, held-for-trading (HFT) shall be a sub-category aligned with the specifications of 'Trading Book' as per the Basel-III framework.
The new bank portfolio classification norms will come into effect from April 1, 2023, the RBI paper said, while inviting comments on a discussion paper in this regard from stakeholders by February 15.
