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NCAF Amendments: Parallel Run Clarifications Addressed

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/270 · issued 31 Mar 2008 · ~2 min read
Quick answerRBI amended the New Capital Adequacy Framework guidelines effective March 31, 2008, based on feedback from banks during the parallel run. Changes are detailed in the Annex; all other provisions of the April 27, 2007 circular remain unchanged.

What changed

RBI issued amendments to the Prudential Guidelines on Capital Adequacy and Market Discipline (NCAF) following clarifications sought by banks during the parallel run. The amendments are specified in the Annex to this circular and take effect from March 31, 2008. All other provisions of the earlier April 27, 2007 circular remain unchanged except as modified by this Annex.

What it means for you

Banks must immediately adopt the amended NCAF guidelines as detailed in the Annex, which address practical issues encountered during the parallel run. This ensures smoother transition to the Revised Framework and aligns regulatory expectations with on-ground implementation challenges. Lenders should review the Annex carefully to update their capital adequacy and market discipline processes.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Commercial Banks (excluding Local Area Banks and Regional Rural Banks)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What prompted these amendments to the NCAF guidelines?

The amendments were made in response to clarifications sought by banks during the parallel run of the new capital adequacy framework, as per the draft guidelines of February 15, 2005.

When do these amendments take effect?

The amendments come into force with immediate effect from the date of the circular, March 31, 2008.

Do these amendments replace the entire April 27, 2007 circular?

No, only the provisions modified as per the Annex are changed; all other provisions of the April 27, 2007 circular remain unchanged.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2279: DBOD.No.BP.BC.67/21.06.001/2007-08 — "Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of New Capital Adequacy Framework (NCAF”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/270 DBOD.No.BP.BC.67 /21.06.001/2007-08 March 31, 2008 The Chairman and Chief Executive Officer All Commercial Banks (excluding Local Area Banks and Regional Rural Banks) Dear Sir, Prudential Guidelines on Capital Adequacy and Market Discipline – Implementation of New Capital Adequacy Framework (NCAF)  – Amendments Please refer to our circular  DBOD.No.BP.BC.90/20.06.001/2006-07 dated April 27, 2007  on the captioned subject. The banks had also been advised to undertake a parallel run of the new capital adequacy framework (as per the draft guidelines of February 15, 2005) with a view to ensuring smooth transition to the Revised Framework. 2.  In the light of clarifications sought by banks during the course of implementation of the parallel run of the NCAF, the guidelines have been reviewed, and it has been decided to effect certain amendments as detailed in the  Annex .  All other provisions of the April 27, 2007 circular, except to the extent modified as per the Annex, remain unchanged.  The amendments will come into force with immediate effect. Yours faithfully, (Prashant Saran) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/270 · issued 31 Mar 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4091&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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