RBI asks banks to disclose details of capital issuance

The Reserve Bank of India has directed banks to disclose details of all capital instruments issued on their balance sheets.

The new rule, issued to conform with Basel III banking capital reforms, will be applicable from July 1 and lenders should report details on their September-end balance sheets, the central bank said in a statement.

This is expected to improve transparency of regulatory capital and to enhance market discipline. Currently, Indian banks do not have to provide details on terms and conditions of the different types of structures they use for raising capital.