1. Please refer to the paragraph 3 of the Statement on Developmental and Regulatory Policies issued by RBI on October 4, 2016 (extract enclosed). It was indicated therein that RBI will issue final guidelines on Large Exposure Framework (LEF) by end-October, 2016.
Accordingly, the final guidelines are annexed. - link
2. The LEF will be effective from April 1, 2019.
Extracts from Statement on Developmental and Regulatory Policies dated October 4, 2016
Para 3. Large Exposure Framework - In order to align the exposure norms for Indian banks with the BCBS standards, and based on comments and feedback received on the Discussion Paper on the Large Exposures Framework, a Draft Large Exposures (LE) Framework was issued on August 25, 2016 for public comments. The comments/feedback received from stakeholders on the draft proposals will be examined and the final guidelines will be issued by end-October 2016 for full implementation by March 31, 2019.