Reports suggest that the union finance ministry is in talks with the Reserve Bank of India (RBI) to relax capital adequacy norms for banks.
The finance ministry wants the central bank to relax the norms in line with the recommendations made by the Basel Committee on Banking Supervision.
The global capital norms for banks, Basel III, would be implemented with effect from April 1, 2013. The deadline for the full implementation of the stiff liquidity norms or Liquidity Coverage Ratio (LCR) for banks, which were to kick in from 2015, has been extended till 2019.
Earlier this month, oversight panel Group of Governors and Heads of Supervision (GHOS), which includes representation from India, of the Basel Committee on Banking Supervision decided to ease the LCR regulations.
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