People familiar with the matter revealed that the Bank of India has told some banks that it is necessary to adjust the way forward bonds are recorded; this type of industry-wide multi-billion dollar asset is being verified. Sources said that during routine on-site audits in recent weeks, the Reserve Bank of India proposed that forward bond transactions should be valued using third-level input parameters, and that related communication was a private discussion. The third level applies to transactions where the value cannot be verified based on observable market data, and the valuation depends on the bank's own assumptions. According to the Reserve Bank of India's regulations, after falling into this category, banks may need to limit dividends, and the amount of regulatory capital that can be used will also be reduced.

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