India to Make Climate Risk Disclosures Mandatory for Banks.

The Reserve Bank of India (RBI) will require banks to disclose climate finance risks starting in April 2025 and meet certain climate targets beginning in 2027. The RBI believes that inadequate information about climate-related financial risks can lead to mispricing of assets and misallocation of capital. Previously, these disclosures were voluntary, but they will now be mandatory. The RBI has listed several categories of disclosures, including the party responsible for climate-related issues, processes to assess and manage risks, and the impacts of various climate scenarios. The mandatory climate targets will be fixed by the banks and will include information about performance against each target. The RBI hopes that these requirements will support the shift towards green financing in India. [Extracted from the article]

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