MUMBAI, May 3: In order to strengthen the risk management mechanism, Reserve Bank of India (RBI) has released guidelines for
implementation of the new global capital adequacy norms.
The banks have to maintain Tier I capital, or core capital, of at
least 7 per cent of their risk weighted assets on an ongoing basis, a RBI statement said.
These guidelines would become effective from January 1, 2013 in a
phased manner.
The Basel III capital ratios will be fully implemented as on March 31, 2018.
The capital requirements for the implementation of Basel III guidelines may be lower during the initial periods and higher during the later years.
At the close of business on January 1, 2013, banks must be able to declare or disclose capital ratios computed under the amended guidelines.
For the fiscal year ending March 31, 2013, banks will have to disclose capital ratios computed under the existing guidelines, as
well as those computed under the Basel III framework, the statement added.
(UNI)
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