BASEL III guidelines - RBI way of working ( More stringent )

The Basel Committee on Banking Supervision (BCBS) at the International level  is the organization who keep on issuing guidelines with the objective of improving banking sector resilience by strengthening global capital and liquidity regulations.  It tries to addresses the lessons of the financial crisis and aims at enhancing banking sector’s ability to absorb shocks arising from financial and economic stress. Further, the BCBS also aims to improve risk management and governance as well as strengthen banks’ transparency and disclosure standards relating to regulatory capital. Reserve Bank of India, is a member of the BCBS, and, intends to implement these proposals for banks operating in India. Guidelines have been drafted based on the Basel III reforms on capital regulation, to the extent applicable to banks operating in India. The Basel III framework will be applicable both at the level of consolidated bank as well as at the level of stand-alone bank. Accordingly, overseas operations of a bank through its branches will be covered in both the scenarios. RBI has issued the draft guidelines for the BASEL III guidelines in India and asked for the comments till 15^th Feb 2012 after which it will be announce by way of a Notification.