The Finance Ministry has requested the Reserve Bank to relax capital adequacy norms for banks in line with the recommendations made earlier this month by the Basel Committee on Banking Supervision.
“RBI is fully seized of the matter and we have also requested them to look into the issue. We are in conversation with them,” said an official source.
The RBI deferred the implementation of Basel III, the global capital norms for banks, by three months to April 1.
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.
The LCR would be introduced as planned on January 1, 2015, but the minimum requirement would be 60 per cent. The same would be increased by 10 percentage points in the subsequent years to reach 100 per cent on January 1, 2019. — PTI
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