Objective
The Reserve Bank of India (RBI) has issued a Master Circular on Basel III Capital Regulations to provide a single point of reference for all the instructions/circulars issued by RBI on the subject.
Applicability
This Master Circular is applicable to all Scheduled Commercial Banks (excluding Regional Rural Banks), Primary (Urban) Co-operative Banks, and State Co-operative Banks.
Key Provisions
The circular outlines the capital requirements for banks, including the minimum capital adequacy ratio, tier I and tier II capital, and the capital conservation buffer.
It also provides guidelines on the computation of capital, risk-weighted assets, and the treatment of various exposures.
Risk Management
The circular emphasizes the importance of risk management and outlines the requirements for banks to identify, assess, and manage risks.
It also provides guidelines on the internal capital adequacy assessment process (ICAAP) and the supervisory review and evaluation process (SREP).
Disclosure Requirements
Banks are required to disclose their capital adequacy ratio, risk-weighted assets, and other relevant information in their financial statements.
Implementation
The circular is effective from April 1, 2013, and banks are required to comply with the provisions outlined therein.
Chat with the Master Circular: