
The RBI has issued final amendment directions to revise the regulatory framework governing the Investment Fluctuation Reserve (IFR) for banks and regulated entities. Under the revised norms, the mandatory requirement to maintain the IFR will be discontinued with effect from May 18, 2026.
It is to be noted that the IFR is a reserve created by banks from their profits to absorb losses arising from Mark-to-Market (MTM) valuation changes in investments, particularly government securities.
