RBIs Latest Bank Investment Norms To Reduce Volatility, Say Analysts

The new norms call for the creation of three categories of securities within a bank's investment book: Held-To-Maturity, Available-For-Sale and Fair Value Through Profit and Loss. Among other nuanced changes, the revised framework updates the regulatory guidelines with global standards and best practices while introducing: A symmetric treatment of fair-value gains and losses. A clearly identifiable trading book under the Held For Trading category. Removal of the 90-day ceiling on the holding..