Guidelines on BASEL III Capital Regulations
The RBI had issued a circular no. DBOD.No.BP.BC.98 /21.06.201/2011-12 dated May 2, 2012 on the subject “Guidelines on Implementation of Basel III Capital Regulations in India”. Vide this circular, the RBI has prescribed the final guidelines on Basel III capital regulations. RBI issued a master circular no. DBR.No.BP.BC.1/21.06.201/ 2015-16 dated July 1, 2015 on Basel III Capital Regulations. Following are main features of these guidelines:
These guidelines became effective from April 1, 2013 in a phased manner. The Basel III capital ratios will be fully implemented as on March 31, 2019.
The capital requirements for the implementation of Basel III guidelines may be lower during the initial periods and higher during the later years. While undertaking the capital planning exercise, banks should keep this in view.
Liquidity Coverage Ratio has been introduced in a phased manner starting with a minimum requirement of 60% from January 01, 2015 and reaching minimum 100% on January 01, 2019.
The banks are required to disclose capital ratios under Basel III from quarter ending June 30, 2013.