Exemption from LEF to Exposures to foreign sovereigns

Reserve Bank of India

RBI/2020-21/104
DOR.No.CRE.BC.45/21.01.003/2020-21

February 24, 2021

All Scheduled Commercial Banks
(Excluding Small Finance Banks, Payments Banks
Local Area Banks and Regional Rural Banks)

Dear Sir/Madam,

Large Exposures Framework – Exemptions

Please refer to circular No. DBR.No.BP.BC.43/21.01.003/2018-19 dated June 03, 2019 on Large Exposures Framework (LEF)

2. Paragraph 3 of the Annex to the above circular specifies the exposures that are exempt from the LEF. On a review, it has been decided to further exempt the following exposures from the LEF:

• Exposures to foreign sovereigns or their central banks that are:

i. subject to a 0% risk weight under Table 2 of paragraph 5.3.1 of the Master Circular – Basel III Capital Regulations dated July 1, 2015, as modified vide circular dated October 8, 2015; and,

ii. denominated in the domestic currency of that sovereign and met out of resources of the same currency.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager