RBI for more Tier-I capital adequacy than Basel III norms

The Reserve Bank of India (RBI) on Thursday indicated it would prescribe higher capital adequacy norms than those proposed under the Basel III framework. This would help sustain the advantage of healthy financial profiles that Indian banks currently enjoy. At the Risk and Compliance Summit on Thursday, Deepak Singhal, Chief General Manager, RBI, said, “A requirement of one per cent above the floor set under Basel III would not impact Indian banks. RBI would not like our banks to be seen as laggards.” The central bank, in its draft guidelines issued in December, had proposed that the common equity Tier-I capital should be at least 5.5 per cent of risk weighted assets (RWAs). Basel III norms prescribe minimum common equity of 4.5 per cent.................

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