RBI/2011-12/62
DBOD.No.BP.BC. 17/21.01.002/2011-12
July 1, 2011
All Commercial Banks
(excluding RRBs)
Dear Sir,
Master Circular - Prudential Norms on Capital Adequacy - Basel I Framework
Please refer to the
Master Circular No. DBOD.BP.BC.4/21.01.002/2010-2011 dated
July 1, 2010 consolidating instructions / guidelines issued to banks till June
30, 2010 on matters relating to prudential norms on capital adequacy. The Master
Circular has been suitably updated by incorporating instructions issued up to
June 30, 2011 and has also been placed on the RBI web-site (
http://www.rbi.org.in).
- It may be noted that all relevant instructions on the above subject contained
in the circulars listed in the Annex 13 have been consolidated. As the banks in
India have migrated to Basle II norms with effect from March 31, 2009,
instructions contained in this circular will be applicable to calculate the
prudential floor of capital in terms of our circular ‘Prudential Guidelines on
Capital Adequacy and Market Discipline – Implementation of the New Capital
Adequacy Framework (NCAF)’ and may be reported in the format prescribed in Annex
12.
- All the banks in India would continue to have the parallel run till March 31,
2013, subject to review, and ensure that their Basel II minimum capital
requirement continues to be higher than the prudential floor of 80% of the
minimum capital requirement computed as per Basel I framework for credit and
market risks.
Yours faithfully,
(P R Ravi Mohan)
Chief General Manager