Regulated Entities (REs) generally use various models as part of their credit management, including for credit appraisal, borrower scoring, pricing, risk management, etc.  With a view to addressing potential risks from use of such models and ensuring robustness in the process of model deployment by REs for credit decisions, the Reserve Bank of India today released the draft circular on ‘Regulatory Principles for Management of Model Risks in Credit’. The Comments on the draft circular are invited from public/stakeholders by September 4, 2024.

Comments/ feedback may be forwarded to:

The Chief General Manager

Credit Risk Group

Department of Regulation, Central Office

Reserve Bank of India, 12/13^th Floor,

Shahid Bhagat Singh Marg,

Fort Mumbai – 400 001

or

by email at strcrgdor@rbi.org.in

(Puneet Pancholy)       
Chief General Manager

Press Release: 2024-2025/835