The Reserve Bank of India is on the brink of activating its climate data repository, with a focus on physical risk assessment ahead of transition risk, to better gauge climate-related financial vulnerabilities among banks.
The Reserve Bank of India is nearing the first live stage of its climate data repository, with the physical risk module expected to come online before the more difficult transition-risk element, according to people who have taken part in the central bank’s climate consultations.
The system, known as RB-CRIS or RBI-CRIS, was announced nearly two years ago and is intended to help banks and other regulated entities assess how climate change could affect their balance sheets. In May, the Reserve Bank of India said the platform would be built in two parts: a public directory of climate datasets and a secure portal offering processed, standardised information for regulated users. The first phase is centred on physical hazards such as floods, cyclones, droughts, heatwaves and extreme temperatures.
People familiar with the discussions told ETBFSI that the physical-risk module is now ready and that the central bank has repeatedly indicated a phased rollout, with the physical layer coming first. That sequencing mirrors approaches taken by other central banks, including the US Federal Reserve, which has used pilot climate scenario analysis exercises to test how acute weather shocks can feed into credit risk and financial stability concerns.
The planned repository reflects growing regulatory concern that climate change is no longer just an environmental issue but a financial one as well. By providing banks with cleaner data and a common framework, the Reserve Bank hopes to improve how institutions measure, price and manage climate-related exposures. Transition risk, which covers the financial impact of the shift to a lower-carbon economy, is expected to follow once the physical-risk component is in place.
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