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Macroprudential and Microprudential Perspectives on Implementing the Basel Principles on Climate-Related Financial Risks: Considerations for the Reserve Bank of India
The report examines the application of the 2022 Basel principles for climate-related financial risks (CRFRs) in India, noting that their microprudential focus may create systemic risks. It proposes two macroprudential principles for the Reserve Bank of India (RBI): incentivising credible transition plans and supporting transition and adaptation finance. The document also details practical hurdles faced by Indian banks, such as data gaps and capacity constraints, and aligns the Basel framework with the RBI's 2022 Discussion Paper and 2024 Draft Disclosure Framework.
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Document type: Report
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