March 20, 2007

DBOD.No.BP. 1151/21.06.001/2006-07

Please refer to our letter DBOD.No.BP.1163/ 21.04.118/ 2005-06 dated February 15, 2005 forwarding the draft guidelines for implementation of the New Capital Adequacy Framework and inviting feedback from banks. The feedback received from a wide spectrum of banks and other stakeholders have been examined and the draft guidelines, which have been suitably revised, are furnished as an Annex to this letter.

2. In view of the importance of the proposed guidelines it has been decided to provide one more opportunity to banks and other stake holders to offer their feedback / comments. Accordingly, the revised draft guidelines on implementation of the New Capital Adequacy Framework furnished in the Annex will be now open for a second round of consultation for a period of three weeks from the date on this letter. The revised draft guidelines are also placed on the website for wider access and feedback. Comments / feedback, if any, may please be addressed to the undersigned at the following address and may also be emailed without fail.

The Chief General Manager-in-Charge
Department of Banking Operations & Development
Reserve Bank of India,
12^th Floor, Central Office Building,
Shahid Bhagat Singh Marg, Fort,
Mumbai – 400 001
Fax: +91-22-22705691

Since the comments / suggestions received on the first draft issued in February 2005 have already been considered, banks may not repeat the same during this round of consultation.

Yours faithfully,

[Prashant Saran]
Chief General Manager-in-Charge