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RBI releases Basel 3 buffer draft rules 

December 9, 2013
Manju Dalal, IFR Asia

The Reserve Bank of India will announce the names of the country’s systematically important banks some time in August 2015. These banks will be required to comply with additional capital requirements on the top of the Basel III capital standards in stages from April 2016 onwards.

The central bank last week released its draft framework on domestic systemically important financial institutions, or Sifis. The RBI also released a draft report on implementation of the counter-cyclical capital buffer. The RBI is inviting public comments on both reports on or before December 31. Final guidelines will be released later.

Sifis will be selected from about 15–20 banks that the RBI will shortlist, based on several yardsticks, such as size of the bank, interconnection with the financial system, infrastructure of the bank and exposure to derivatives, cross jurisdictional liabilities and trading and available-for-sale securities.

Read more: IFR Asia

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