BASEL III framework
The Basel Committee on Banking Supervision (BCBS) and the Financial Stability Board (FSB) had undertaken an extensive review of the regulatory
framework in the wake of the sub-prime crisis. In the document titled ‘Basel III: A global regulatory framework for more resilient banks and banking systems’, released by the BCBS in December 2010, it had inter alia proposed certain minimum set of criteria for inclusion of instruments in the new definition of regulatory capital. The RBI issued a circular no. DBOD.No.BP.BC.98 /21.06.201/2011-12 dated May 2, 2012 on the subject “Guidelines on Implementation of Basel III Capital Regulations in India” and also Master Circular No. DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on “Basel lII – Capital Regulations”. Vide these circulars the RBI has prescribed the final guidelines on Basel III capital regulations. The reader may refer to the chapter 1, “Basel III” of Part V of the Guidance Note for the detailed guidance on the New Capital Adequacy Framework, i.e., Basel III.