On December 04, 2025, the Reserve Bank of India (RBI) issued amendments to the Large Exposures Framework (LEF) and Intragroup Transactions and Exposures. The RBI had previously issued two draft amendment circulars on September 29, 2025: (i) Large Exposures Framework (Amendment Circular), 2025; and (ii) Guidelines on Management of Intragroup Transactions and Exposures (Amendment Circular), 2025. The amendments aim to rationalize provisions related to the treatment of exposures of foreign bank branches in India to their head office and other group entities. Feedback on the drafts was reviewed and incorporated into the final Amendment Directions, which are being issued today. A statement on the feedback received for the draft Directions is provided in the Annex. The RBI has issued the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025. The objective is to clarify the prudential treatment of exposures of foreign bank branches operating in India to their group entities and certain methodological aspects relating to the calculation of LEF and ITE. The press release number is 2025-2026/1630. Brij Raj, Chief General Manager. Contact information: Website: www.rbi.org.in, Email: helpdoc@rbi.org.in, Phone: 022 - 2266 0502. Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001.
Key Entities Referenced
Reserve Bank of India: India's central bank, responsible for issuing the amendment directions.
Large Exposures Framework (Amendment Circular), 2025: One of the draft amendment circulars issued, relating to large exposures.
Guidelines on Management of Intragroup Transactions and Exposures (Amendment Circular), 2025: One of the draft amendment circulars issued, focusing on intragroup transactions and exposures.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025: Final amendment directions issued concerning concentration risk management for commercial banks.
Mumbai: Location of the Reserve Bank of India's central office.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 04, 2025
RBI issues Amendments to Large Exposures Framework (LEF) and
Intragroup Transactions and Exposures
The Reserve Bank of India had, on September 29, 2025, issued two draft
amendment circulars, viz.: (i) Large Exposures Framework (Amendment Circular),
2025; and (ii) Guidelines on Management of Intragroup Transactions and Exposures
(Amendment Circular), 2025 seeking feedback from stakeholders. The amendment
directions were aimed primarily at rationalising certain extant provisions relating to
treatment of exposures of foreign bank branches in India to their head office and
other group entities.
2. Feedback received on the above drafts has been examined and the consequent
modifications, as decided by the Reserve Bank, have been suitably incorporated in
the final Amendment Directions and are being issued today. A statement on the
feedback received for the draft Directions is provided in the Annex.
3. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of
India (Commercial Banks – Concentration Risk Management) Amendment
Directions, 2025.
4. Objective of these Amendment Directions is to clarify regarding prudential
treatment of exposures of foreign bank branches operating in India to their group
entities, and certain methodological aspects relating to calculation of LEF and ITE.
(Brij Raj)
Press Release: 2025-2026/1630 Chief General Manager