RBI extends Basel III time by 3 months
"The Reserve Bank of India has rescheduled the start date for implementation of Basel III to April 1, 2013 from January 1, 2013," the central bank said.
RBI, however, did not provide reasons behind the rescheduling.
The move, experts said, will provide additional time to some banks that need to enhance their capital base in line with the new norms for strengthening the resilience of the global banking system.
RBI further said that India will closely monitor the progress on Basel III implementation in other countries, particularly the major ones, who are the members of the Basel Committee.
RBI had issued guidelines on the implementation of Basel III capital regulation in India in May this year. These guidelines were to be implemented from January 1, 2013 in a phased manner and were to be fully implemented by March 2018.
As per the new global norms, banks will have to hold core capital of at least 7 per cent of risk weighted assets by 2018.
In September, RBI Governor D Subbarao had said that Indian banks will require an additional capital of Rs 5 lakh crore (Rs 5 trillion) to meet the new global banking norms, Basel III, RBI Governor D Subbarao said today.
Of the total Rs 5 lakh crore, equity capital will be Rs 1.75 lakh crore, while Rs 3.25 lakh crore will have to come as the non-equity portion.
The government, which owns
Be the first to comment.