RBI asks banks to disclose capital adequacy for Basel III implementation

The Reserve Bank of India (RBI) has asked banks to disclose existing capital ratios computed under the existing (Basel II) norms for the financial year ending 31 March 2013, as also capital ratios computed under the Basel III capital adequacy framework, ahead of migration to Basel III regulations.

The capital requirements for the implementation of Basel III guidelines may be lower during the initial periods and higher during the later years. While undertaking the capital planning exercise, banks should keep this in view, RBI said.

The financial sector regulator said it is currently working on operational aspects of implementation of the countercyclical capital buffer and guidance to banks on this will be issued in due course.

Besides, RBI's Basel Committee is looking into certain other proposals, viz, 'definition of capital disclosure requirements', 'capitalisation of bank exposures to central counterparties' etc.

The final proposals of the Basel Committee on these aspects will be considered for implementation, to the extent applicable, in future, RBI said.

RBI had, in its 2012-13 monetary policy statement issued on 17 April, indicated that the final guidelines on the implementation of Basel III capital regulations would be issued by end-April 2012.