The Reserve Bank has extended the deadline for a full implementation of the Basel III capital adequacy norms to March, 2019. This addresses the industry concerns on potential stresses resulting from the regulations on asset quality and impact on the banks'performance.
Basel III refers to wide-ranging measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation and risk management in banking. According to Basel III capital regulations, the Capital Conservation Buffer (CCB) will be implemented from March-end 2016. The RBI has also revised the transitional arrangements regarding the minimum capital ratio required to be maintained by banks proportional to their risk-weighted assets (loans and advances).