Master Direction for Commercial Banks’ Investment Portfolio
The Reserve Bank of India has issued directions for the classification, valuation, and operation of investment portfolios of commercial banks.
The directions are applicable to all commercial banks, including regional rural banks and local area banks.
The directions define various terms related to securities, including “Approved Securities”, “Available for Sale”, “Held to Maturity”, “Held for Trading”, and others.
The directions also cover the classification of securities, valuation of investments, and operational guidelines for commercial banks.
The directions are divided into chapters, with Chapter I covering preliminary matters such as short title, commencement, applicability, and definitions.
Chapter II deals with the general principles for classification, valuation, and operation of investment portfolios.
Note: The directions aim to ensure that commercial banks maintain a robust investment portfolio management system, with a focus on risk management and compliance with regulatory requirements.
Chat with the Master Direction: