First, the minimum capital to risk assets ratio (CRAR) has been kept at nine per cent i.e., one percentage point above the international norm; and second, the banks are required to maintain a separate Investment Fluctuation Reserve (IFR) out  BIS Review 62/2007  9  of profits, towards interest rate risk.
The IFR has helped in cushioning the valuation losses required to be booked by the banks in a rising interest rate environment.