Rules on banks' investment portfolios to be revamped first time in 21 years

For the first time in 21 years, the Reserve Bank of India (RBI) will revise norms for investment portfolios of commercial banks to reflect changes in global standards on valuation and measurement, and progress in the domestic market. This could pave the way for banks to transition to the new accounting standards (Ind-AS).

The outstanding investment portfolio of commercial banks was at Rs 45.84 trillion as of November 19 this year. The investments are predominantly in government bonds.     

The current norms are largely based on a framework introduced in October 2000, which drew upon the then prevailing global standards and