Friday, 10 August 2012

Guidelines for Basel-III Capital Requirement Norms

The Reserve Bank of India (RBI) released the final guidelines on Implementation of Basel III Capital Regulations in India on May 2, 2012 which are available at RBI website www.rbi.org.in. RBI has informed that Basel III will be implemented in India over a sufficiently long transition period to avoid any unintended consequences on growth and lending activities of banks. 

The quantum of capital that would be required by Indian banks due to implementation of Basel III capital standards depends on numerous factors such as actual economic growth in the real sector, growth in the Risk Weighted Assets of the banks, profitability of banks and extent of retained earning, level of non-performing assets, growth in capital markets, investors risk appetite and their confidence in the banking system etc. 
This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today. 

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