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Master Circular on New Capital Adequacy Framework (NCAF) 2008

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/68 · issued 01 Jul 2008 · ~2 min read
Quick answerRBI consolidated all NCAF guidelines into a single master circular effective July 1, 2008, covering Pillar 1 capital requirements, Pillar 2 supervisory review, and market risk charges. Banks must use this as the single reference for capital adequacy compliance.

What changed

RBI issued a master circular that consolidates all existing instructions on the New Capital Adequacy Framework (NCAF), including Pillar 2 guidelines and amendments issued up to June 30, 2008. This replaces earlier circulars dated April 27, 2007 and March 26, 2008, providing a single document for banks. The circular includes a glossary of terms and lists all modifications/clarifications incorporated.

What it means for you

Banks now have a unified reference for capital adequacy norms, reducing the need to track multiple circulars. The consolidation ensures consistent application of credit risk, market risk, and operational risk capital charges under Pillar 1, along with supervisory review under Pillar 2. Compliance teams must align internal policies with this master circular to avoid regulatory gaps.

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), Risk management departments, Compliance and regulatory reporting teams, Capital planning and treasury functions

❓ Common questions

Regulatory timeline

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

Does this master circular introduce new capital requirements?

No, it consolidates existing guidelines issued through earlier circulars and mailbox clarifications up to June 30, 2008. No new requirements are added.

Which banks are covered by this circular?

All commercial banks except Local Area Banks and Regional Rural Banks are required to follow these guidelines.

Where can I find the glossary of terms used in the circular?

The glossary is provided in Annex 15 of the master circular, which is available on the RBI website.

📜 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 #2177: DBOD.No.BP.BC.11/21.06.001/2008-09 — "Master Circular - Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Ad”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/68 DBOD.No.BP.BC. 11 /21.06.001/2008-09 July 1, 2008 All Commercial Banks (excluding Local Area Banks and Regional Rural Banks) Dear Sir, Master Circular - Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework (NCAF) Please refer to the circulars DBOD.No.BP.BC.90/20.06.001/2006-07 dated April 27, 2007 and DBOD.No.BP.BC.66/21.06.001/2007-08 dated March 26, 2008, in terms of which the ‘Guidelines on the implementation of NCAF' and ‘Guidelines for Pillar 2 - Supervisory Review Process under the NCAF', respectively, were issued. In order to enable the banks to have access to all the existing instructions on the subject, in a single document, a Master Circular has been prepared, and is furnished in the Appendix. It incorporates the Pillar 2 guidelines and the amendments / clarifications issued on the subject till June 30, 2008. A glossary of some of the terms used in this circular has been provided in Annex - 15 . This Circular has also been placed on the website of the Bank (www.rbi.org.in). 2. We advise that this Master Circular consolidates the modifications / clarifications issued vide circulars /mailbox clarifications listed in '>Annex - 16 . Yours faithfully, (Prashant Saran) Chief General Manager-in-Charge TABLE OF CONTENTS
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/68 · issued 01 Jul 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=4353&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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