As part of convergence of the Reserve Bank’s regulations for banks with Basel III standards, the Reserve Bank of India has today placed on its website ‘Draft Guidelines for Minimum Capital Requirements for Market Risk’ for comments of stakeholders and members of the public. These guidelines shall be applicable to all Commercial Banks (excluding Local Area Banks, Payments Banks, Regional Rural Banks and Small Finance Banks) and shall come into effect from April 1, 2024. These guidelines are not applicable to Co-operative Banks (i.e., Urban Co-operative Banks, State Co-operative Banks and Central Co-operative Banks).

The comments on the draft guidelines from all stakeholders may be sent by email with the subject line “Comments on Draft Guidelines on Minimum Capital Requirements for Market Risk” by April 15, 2023.

(Yogesh Dayal)     
Chief General Manager

Minimum Capital Requirements for Market Risk: draft guidelines issued, applicable to commercial banks, comments invited. Draft guidelines set minimum capital requirements for market risk under Basel III convergence, applicable to commercial banks while excluding Local Area Banks, Payments Banks, Regional Rural Banks, Small Finance Banks and all co-operative banks; they specify a future effective date and invite stakeholder comments within a defined consultation period.