19-May-2026
Banking
 
RBI discontinues investment fluctuation reserve requirement for banks
19-May-2026

The Reserve Bank on Monday discontinued the requirement for commercial banks to maintain Investment Fluctuation Reserve (IFR), an additional buffer to hedge against depreciation in the value of investments. In view of the developments in the prudential frameworks governing market risk and investments for commercial banks, there is a need to amend the extant instructions, it said while issuing Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026. The requirement of IFR has been discontinued with effect from May 18, 2026, said a circular.

News Source:- https://economictimes.indiatimes.com/news/economy/policy/rbi-discontinues-investment-fluctuation-reserve-requirement-for-banks/articleshow/131180009.cms
 
 
 

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