The directions implement the Basel III framework for calculating risk-weighted assets in a more consistent and risk sensitive manner. These mandate the Standardised Approach for assessing credit risk across banking book exposures, covering sovereigns, banks, corporates, MSMEs, retail, real estate, and off-balance sheet items. The framework prescribes detailed risk weights based on external credit ratings, exposure types, and collateral, while emphasizing due diligence, alignment with internal risk assessment, and prudent valuation norms.