Resources for Basel II Capital Accord (Basel II)

RBI issues order on Basel II norms for banks

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Indian banks having foreign branches and foreign banks operating in India will have to migrate to Basel II norms from Mar. 31, 2008, according to an RBI release.All other commercial banks, excluding local area banks and regional rural banks, have to adopt Basel II norms not later than Mar. 31, 2009, it added.

Under Basel II norms, banks would have to adopt standardised approach for credit risk and basic indicator approach for operational risk for computing their capital requirements under the revised framework, according to the new Basel II guidelines issued today. Banks are required to obtain the prior approval of the RBI to migrate to the internal rating-based approach for credit risk and the standardised approach or the advanced measurement approach for operational risk for computing regulatory capital requirements.

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