The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (All India Financial Institutions – Asset Liability Management) Directions, 2025.
The following has been stated namely: -
• It states that the asset-liability management (ALM) system for financial institutions shall operate as a strategic tool of balance-sheet control, built around three pillars: a robust information system capable of accurate, timely MIS; a clearly defined organisational structure with a top-management led ALCO and oversight by the board; and a systematic process that identifies, measures, monitors and controls liquidity, interest-rate and foreign-exchange risks.
• The framework emphasizes that institutions shall map their assets and liabilities into appropriate maturity buckets, monitor cumulative mismatches, and impose internal tolerance limits in line with their business strategy, ensuring they do not rely on ad-hoc action but evolve an integrated risk management system that supports long-term sustainability.
• Additionally, the guidelines require that the ALM function be embedded in board-approved policy, with defined responsibilities and regular monitoring, and that institutions align their ALM processes with broader business planning, treasury strategy, and contingency funding arrangements.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/330 DOR.LRG.REC.No.249/13-10-005/2025-26]
