RBI/2013-14/71
DBOD.No.BP.BC. 21/21.01.002/2013-14
July 1, 2013
All Local Area Banks
Dear Sir,
Master Circular – Prudential Norms on Capital Adequacy – Basel I Framework
Please refer to the Master Circular No. DBOD.BP.BC.15/21.01.002/2012-2013 dated July 2, 2012 consolidating instructions / guidelines issued to commercial banks (including LABs) till June 30, 2011 on matters relating to prudential norms on capital adequacy under Basel I framework. The Master Circular has been suitably updated by incorporating instructions issued up to June 30, 2013 and has also been placed on the RBI web-site (http://www.rbi.org.in).
2. The stipulation of parallel run as well as the prudential floor, to all commercial banks (excluding LABs and RRBs), for implementation of Basel II vis-Ã -vis Basel I Framework has since been withdrawn vide circular DBOD.BP.BC.No. 95/21.06.001/2012-13 dated May 27, 2013. Consequently, this Master Circular is no more applicable to scheduled commercial banks (excluding RRBs). This Master Circular contains instructions that are relevant and applicable to Local Area Banks (LABs) only.
3. It may be noted that all relevant instructions on the above subject contained in the circulars listed in the Annex 11 have been consolidated.
Yours faithfully,
(Chandan Sinha)
Principal Chief General Manager
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Click here to download the Master Circular
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