RBI issues revised guidelines for banks’ investments

RBI said the revised guidelines for banks will be effective from April 1, 2024 (File)

New Delhi:

The Reserve Bank of India on Tuesday issued revised guidelines for classification, valuation and operation of investment portfolio of commercial banks, which will come into effect from April 1, 2024.

Banks will have to categorize investments into three categories from the next financial year: available for sale (AFS), held to maturity (HTM) and a new category called “fair value through profit and loss” or FVTPL.

The existing Held for Trading (HFT) category will become a sub-category of FVTPL.

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