India’s Central Bank Defers Climate Risk Disclosure Plans

The Reserve Bank of India has reportedly postponed its initiative to require banks to disclose climate-related risks. The decision comes amid ongoing discussions on aligning India’s financial sector with global sustainability standards. While climate risk disclosures are seen as critical for transparency and resilience, the RBI is taking a measured approach to ensure readiness across the banking system.  

Key highlights from the announcement include  

• RBI defers plans to mandate climate risk disclosures from banks.  
• Decision reflects cautious approach to balancing financial stability and sustainability.  
• Banks expected to continue preparing for climate-related reporting frameworks.  
• Global regulators, including the EU and UK, have already introduced mandatory climate risk disclosures.  
• India’s financial sector remains under pressure to align with international ESG standards.  
• Analysts suggest deferral provides banks more time to strengthen data systems and risk assessment models.  

Industry experts note that while the deferral delays immediate compliance, it underscores the complexity of integrating climate risk into financial reporting. The RBI is expected to revisit the framework once banks demonstrate stronger readiness and infrastructure for climate-related disclosures.  

Sources: Reuters, Economic Times, Business Standard