Countercyclical Capital Buffer (CCyB)

In May 2026, the Reserve Bank of Indiasaid it will not activate the countercyclical capital buffer (CCyB) as the measure is not required in the current circumstances.

  • The Countercyclical Capital Buffer (CCyB) is a macroprudential regulatory tool under the Basel III framework designed to strengthen the resilience of the banking system across economic cycles.
  • It requires banks to build additional capital during periods of strong credit growth and economic expansion, which can later be used during periods of financial stress or downturns to maintain credit flow to the real economy.
  • This ensures that banks remain stable and continue lending even ....
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