RBI Climate Risk Disclosure Norms for Banks Near Final
Why in the news
The RBI is close to completing climate risk reporting guidelines for lenders, even as some global banks retreat from similar pledges.
Timeline
| Stage | Detail |
|---|---|
| Draft norms | February 2024 |
| Guidance note | 52 pages, shared with large banks |
| Voluntary | FY 2026-27 |
| Mandatory | FY 2027-28 |
Disclosures required
- Climate risks in loan portfolios.
- Mitigation strategies and decarbonisation targets.
- Borrowers’ gross emissions by asset class and industry.
- Stress tests for physical and transition risks.
Bank preparation
Banks are hiring climate risk consultants and collecting granular climate data.
Significance
- India joins the UK and Japan in demanding climate finance transparency.
- Backs the emissions target due at COP30 (Brazil, Nov 2025).
- Improves resilience to climate shocks.
Exam angle
- Regulator: RBI; risk types: physical and transition.