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The Reserve Bank of India (RBI) has issued the Commercial Banks – Concentration Risk Management (Amendment) Directions, 2025 to strengthen banks’ risk management practices. The amendments focus on better monitoring of large exposures and concentration risks in bank credit portfolios.

Key changes include revised definitions of capital and exposures, updated guidelines for intra-group exposures, and removal of certain outdated provisions. These adjustments aim to ensure that banks maintain adequate capital buffers and adopt robust practices to manage concentrated risks effectively.

By aligning regulatory requirements with evolving market realities, the RBI seeks to enhance the resilience of the banking sector. Banks are expected to implement these amendments by April 1, 2026, though early adoption is encouraged. This move underscores the RBI’s commitment to maintaining financial stability and safeguarding the integrity of India’s banking system.