RBI clarifies that it is not necessary to activate countercyclical capital buffer (CCyB)

The Reserve Bank of India through press release dated April 19, 2021 has clarified that it is not necessary to activate CCyB at this point in time. The framework on countercyclical capital buffer (CCyB) was put in place by the Reserve Bank of India in terms of guidelines issued on February 5, 2015. The framework envisages the credit-to-GDP gap as the main indicator, which may be used in conjunction with other supplementary indicators like Credit-to-Deposit Ratio, Industrial Outlook Assessment Survey, Interest Coverage Ratio, and Asset Quality.