Now Reading: RBI climate data repository RB-CRIS set for rollout
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RBI climate data repository RB-CRIS set for rollout
The Reserve Bank of India is close to operationalising RB-CRIS, its climate data repository, with the physical risk module expected in two to three months, ETBFSI reports. Announced in October 2024 by…
The Story in Brief
The Reserve Bank of India is close to operationalising RB-CRIS, its climate data repository, with the physical risk module expected in two to three months, ETBFSI reports. Announced in October 2024 by then Governor Shaktikanta Das, the repository will first cover floods, cyclones, droughts and extreme temperatures before addressing transition risk.
Industry participants cited challenges: converting raw climate data into usable financial risk information requires pin-code level granularity, which banks often lack for their assets. Transition risk modelling is even more complex, depending on economic growth, geopolitics and carbon pricing. The person working on RB-CRIS said banks must first learn their own asset coordinates, and physical risk assessment may eventually need to be mandated by SEBI and RBI.
The Indian Opinion
Commentators may rush to call RB-CRIS a silver bullet for climate finance, but the biggest hurdle is not data collection, it is banks' own ignorance of their assets' exact locations. The RBI is right to start with physical risk, but without mandatory asset-level disclosure from lenders, the repository will remain underused. The real test will be whether banks can map their entire portfolio to pin codes within the next two years.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
