India new bank capital rules to start in April: RBI

by Dec 29, 2012

MUMBAI (Reuters) - India will start implementing new global capital rules for banks, known as Basel III, from April 1, 2013 rather than the beginning of January, the Reserve Bank of India (RBI) said on Friday.

It said this would align the introduction of the rules with the start of the country's tax year, which runs from April to March. The RBI gave no other reason for the change.

The new rules have been created by international regulators to strengthen banks after the financial crisis. Under the Basel III regime, India's banks will have to hold core capital of at least seven percent of (risk weighted) assets.

The central bank had originally said in May that implementation of Basel III would begin in January. The new rules are set to be fully implemented by the end of March 2018.

(Reporting by Shamik Paul. Editing by Jane Merriman)

Firstpost encourages open discussion and debate, but please adhere to the rules below, before posting. Comments that are found to be in violation of any one or more of the guidelines will be automatically deleted:

Personal attacks/name calling will not be tolerated. This applies to comments directed at the author, other commenters and other politicians/public figures

Please do not post comments that target a specific community, caste, nationality or religion.

While you do not have to use your real name, any commenters using any Firstpost writer's name will be deleted, and the commenter banned from participating in any future discussions.

Comments will be moderated for abusive and offensive language.

Please read our comments and moderation policy before posting