# RBI invites public comments on revised CVA framework

2026-08-07T12:39:57+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

RBI has released draft directions for a revised Credit Valuation Adjustment (CVA) framework, replacing the 2011 guidelines and aligning with the final Basel III standards. Banks may adopt the basic approach (BA-CVA) in full or reduced version. Those with insignificant non-centrally cleared derivatives can set CVA capital charge at 100% of counterparty credit risk capital charge. The revisions increase risk sensitivity by sector and credit quality and clarify hedge eligibility. Comments are invited until August 28, 2026 through the 'Connect 2 Regulate' platform or by email. The framework aims to better capture counterparty default risk in derivative pricing.

## Coverage

- rbi.org.in <https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63314>

Tags: banking regulation, Basel III, CVA, derivatives, RBI, risk management
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