Basel I Capital Adequacy Prudential Norms Master Circular 2011

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 ). 2. 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. 3. 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 Master Circular on ‘Prudential Norms on Capital Adequacy’ S. No .

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/62 · issued 01 Jul 2011. The plain-English explanation above is BankPulse’s own independent summary.

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