RBI/2007 2008/26DBOD No BP BC 4/21 01 002 / 2007 08, Master Circular- Prudential Norms on Capital Adequacy

RBI/2007-2008/26
DBOD No. BP.BC. 4/21.01.002 / 2007-08

July 2, 2007

All Commercial Banks
(excluding RRBs)

Dear Sir,

Master Circular- Prudential Norms on Capital Adequacy

1. Please refer to the Master Circular No. DBOD. BP. BC. 13/ 21.01.002/ 2006-2007 dated July 1, 2006 consolidating instructions/ guidelines issued to banks till June 30, 2006 on matters relating to prudential norms on capital adequacy. The Master Circular has been suitably updated by incorporating instructions issued up to 30th June 2007 and has also been placed on the RBI web-site (http: // www.rbi.org.in).
   
   
2.  It may be noted that all relevant instructions on the above subject contained in the circulars listed in the Appendix have been consolidated. These instructions are applicable to all banks till March 30, 2008. However, for banks migrating to Basle II norms with effect from March 31, 2008, instructions contained in our circular DBOD. No. BP. BC.90 /20.06.001/2006-07 dated April 27, 2007 on 'Implementation of the New Capital Adequacy Framework' will be applicable. For banks, which will not be migrating to Basle II, the instructions contained in this circular will continue to be applicable.

Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge