(vi)  All OTC forex and interest rate derivatives attract a much higher credit conversion factor (CCF) than prescribed under the Basel framework and all exposures are reckoned on a gross basis for capital adequacy purpose.
The applicable CCFs were increased in 2008 since it was felt that the conversion factors prescribed under the Basel framework did not sufficiently capture the market volatility of underlying variables in the Indian context. (vii)  Exposures of banks to central counterparties (CCPs) attract a zero risk weight as per Basel norms.