The new pitch for bond dealers to bat on

Treasury managers are padding up for the new norms for the classification, valuation and operation of investments

Bond dealers, the accounts department and the technology division of all banks are busy these days, preparing for the Reserve Bank of India’s (RBI’s) latest norms for the classification, valuation and operation of investments, which will come into effect from the next financial year, beginning April 2024.

The changes in norms, to be in sync with the global best practices, follow a discussion paper that the banking regulator had issued in January 2022.

Going by the new rules, banks will have to classify their investments, except for their exposure in their own subsidiaries, joint ventures and associates, into three categories: held to