The Reserve Bank of India (RBI) plays a pivotal role in regulating the financial landscape of the country. One of its significant functions is the formulation and implementation of regulations to ensure the stability and resilience of the banking sector. In this regard, the recent circular issued by RBI regarding Basel III Capital Regulations holds paramount importance. The circular, denoted as RBI/2024-25/08, addresses all Scheduled Commercial Banks except for Small Finance Banks, Payments Banks, and Regional Rural Banks. It updates the previous Master Circular, incorporating the latest guidelines on Basel III capital adequacy. The essence of these amendments is to enhance the resilience of banks and mitigate systemic risks. The issuance of the Master Circular by RBI underscores its proactive approach towards enhancing the resilience and stability of the banking sector. By updating and consolidating guidelines on Basel III capital regulations, RBI ensures that banks operate within a robust framework, fostering financial stability and depositor confidence. It’s imperative for banks to adhere to these guidelines meticulously to uphold the integrity and soundness of the financial system.
Reserve Bank of India
RBI/2024-25/08
DOR.CAP.REC.4/21.06.201/2024-25
April 01, 2024
All Scheduled Commercial Banks
(Excluding Small Finance Banks, Payments Banks
and Regional Rural Banks)
Madam / Dear Sir,
Master Circular – Basel III Capital Regulations
Please refer to the Master Circular No. DOR.CAP.REC.15/21.06.201/2023-24 dated May 12, 2023, consolidating therein the prudential guidelines on Basel III capital adequacy issued to banks till that date.
2. The instructions contained in the aforesaid Master Circular have been suitably updated / amended by incorporating relevant guidelines, issued as on date. A list of circulars consolidated in this Master Circular is contained in Annex 26.
3. Small Finance Banks and Payments Banks may refer to their respective licensing guidelines and operating guidelines issued by Reserve Bank, for prudential guidelines on capital adequacy.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
Encl.: As above
