The Reserve Bank of India has released draft guidance on regulatory principles for model risk management, applicable to various financial institutions.
Guidance on Model Risk Management
The Reserve Bank of India has unveiled draft guidance on regulatory principles for Model Risk Management, inviting public comments. This guidance is particularly relevant for commercial banks and other regulated entities.
By establishing these principles, the RBI aims to improve the management of risks associated with the implementation and use of models in financial decision-making. The draft is intended to foster safety and soundness in banking operations.
Institutions should evaluate this guidance carefully, as it may necessitate adjustments to their risk management frameworks and policies to align with regulatory expectations.
Citations
- Model Risk Management Guidance (2026) RBI Press Release
