What changed
RBI replaced the April 1, 2022 Master Circular on Basel III capital regulations with a new version dated May 12, 2023. The update incorporates all relevant guidelines issued up to that date, with a list of consolidated circulars provided in Annex 26.
What it means for you
Banks must now refer to the 2023 Master Circular for the latest Basel III capital adequacy requirements. The update ensures alignment with current prudential norms, and non-compliance could affect capital reporting. SFBs and PBs should continue following their separate licensing guidelines.
What you must do
- Replace the April 2022 Master Circular with the May 2023 version for all Basel III capital compliance.
- Review Annex 26 to identify any new or amended circulars that may impact your bank's capital adequacy calculations.
- Ensure your compliance and risk teams are trained on the updated circular to avoid reporting errors.
Who it affects
All Scheduled Commercial Banks (excluding SFBs, PBs, and RRBs), Risk management and compliance teams, Capital planning and reporting departments
Does this Master Circular apply to Small Finance Banks?
No, Small Finance Banks and Payments Banks must refer to their respective licensing and operating guidelines for capital adequacy norms.
What is the key change from the previous Master Circular?
The 2023 version consolidates all Basel III guidelines issued up to May 12, 2023, replacing the April 1, 2022 circular. Annex 26 lists all circulars included.
Where can I find the list of circulars consolidated in this Master Circular?
The list is provided in Annex 26 of the circular, which is available on the RBI website.