Implementation in India
- Basel-III implementation in India had to be completed by March 2019. The new date is March 2020.
- The RBI choose to delay the implementation of Basel standards by another six months due to the coronavirus outbreak.
- Bank capital requirements, such as those related to NPAs, are reduced as a result of Basel III’s time extension.
- This extension will affect how foreign players see Indian banks and the central bank.
Basel Norms
The Basel Committee on Banking Supervision (BCBS) established the Basel Norms as the standards for international banking laws. These standards aim to harmonize international financial legislation and strengthen the global banking system. A total of 27 people from different nations, including India, make up BCBS. Basel, I, II, and III are the three guidelines the Basel Committee has released to achieve its goal. The Basel Committee on Banking Supervision series focuses on the threats to banks and the financial system. Basel-III, the most recent agreement, was approved in November 2010. Basel III mandates a minimum level of common equity and a minimum liquidity ratio for banks. Its administrative headquarters are in the Basel, Switzerland-based headquarters of the Bank of International Settlements (BIS). Thus, the Basel norms’ name.
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