RBI's new market risk directions mandate increased capital via a simplified standardized approach, aligning India with Basel 3. While offering compliance ease, the author warns against banks slackening internal risk management. The capital buffer might disincentivize advanced banks from developing sophisticated risk assessment capabilities, hindering support for complex corporate financing. This could lead to "market risk management atrophy" and future economic vulnerability. The author suggests nudging frontier banks towards internal models to ensure robust domestic capacity in a complex global environment.