The Reserve Bank of India (RBI) today said it will come out with the final guidelines on implementation of new global risk mechanism, Basel III capital regulations by end of the month.
"It is proposed to issue the final guidelines on the implementation of Basel III capital regulations by end-April 2012," the RBI said in its annual credit policy for 2012-13.
Last year, the RBI issued draft guidelines on implementation of Basel III capital regulations envisaging that the equity capital of a bank should not be less than 5.5% of risk-weighted loans.
The guidelines provide a roadmap for smooth implementation of Basel III capital regulations in a phased manner.
"The RBI is also in the process of estimating, on the basis of data collected from banks, the likely impact of the proposed Basel III norms on banks' capital position and leverage," it said.
It is proposed that the implementation period of minimum capital requirements and deductions from Common Equity will begin from January 1, 2013 and be fully implemented as on March 31, 2017, it said.
However, it said, the capital conservation buffer requirement is proposed to be implemented between March 31, 2014 and March 31, 2017.
Besides, the RBI has asked banks to bring down interest variation on term deposits irrespective of the amount.
The RBI has stipulated that banks should not discriminate in the matter of interest rate paid on deposits, except in respect of fixed deposit schemes specifically meant for resident Indian senior citizens and single term deposits of Rs 15 lakh and above.
However, it is observed that there are wide variations in banks' retail and bulk deposits rates, making it unfair to retail depositors, it said.
Further, banks are offering significantly different rates on deposits with very little difference in maturities. This suggests inadequate liquidity management system and inadequate pricing methodologies.
