New Delhi, Jan. 16 -- The Reserve Bank of India has proposed stricter capital requirements to limit banks' exposure to volatility in foreign exchange and bullion markets, by prescribing higher capital charges on open positions, as per draft norms issued for public consultation.

Under the draft norms, banks must maintain a 9 percent capital charge on net open foreign exchange and gold positions from April 1, 2027, aligning Indian rules with global standards and curbing excessive risk-taking, reported The Times Of India.

Introduction of a Flat 'Safety Buffer'

Banks will be required to hold capital equal to 9 percent of their total net open position, over and above existing capital charges for credit and interest rate risks.

The RBI said...