RBI/2012-13/95
DBOD.No.BP.BC.16/21.06.001/2012-13

July 2, 2012

All Scheduled Commercial Banks 
(Excluding Local Area Banks and Regional Rural Banks)

Dear Sir,

Master Circular - Prudential Guidelines on Capital Adequacy
and Market Discipline - New Capital Adequacy Framework (NCAF)

Please refer to the Master Circular No.DBOD.BP.BC.11/21.06.001/2011-12 dated July 1, 2011, consolidating therein the guidelines issued to banks till that date.

2. The aforesaid Master Circular has been suitably updated by incorporating relevant instructions issued up to June 30, 2012 listed in Annex 17 and has been placed on the RBI Web-site (/en/web/rbi).

3. The Master Circular does not cover the guidelines on Basel III capital regulations issued on May 2, 2012, which would become effective from January 1, 2013, in a phased manner. However, as stated in the circular, ibid, for the financial year ending March 31, 2013, banks will have to disclose the capital ratios computed under the above guidelines as well as those computed under the Basel III Capital Adequacy Framework.

Yours faithfully,

(Deepak Singhal)
Chief General Manager-in-Charge

Encl:  As above