RBI/2015-16/85
DBR.No.BP.BC.4./21.06.001/2015-16

July 1, 2015

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

Madam/Sir,

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

Please refer to the Master Circular DBOD.BP.BC.5/21.06.001/2014-15 dated July 1, 2014, consolidating therein the guidelines issued to banks till that date on NCAF.

2. This Master Circular consolidates instructions on the above matters issued up to June 30, 2015.

3. It may be noted that this Master Circular does not cover the guidelines on Basel III capital regulations which are consolidated in the Master Circular DBR.No.BP.BC.1./21.06.201/2015-16 dated July 1, 2015 on “Basel III Capital Regulations”.

4. The guidelines in this Master Circular have limited relevance only for the purpose of transitional arrangements provided for regulatory adjustments/deductions up to March 31, 2017 as stated in the Master Circular on “Basel III Capital Regulations” referred to in paragraph 3 above. It is emphasized that capital adequacy has to be maintained in terms of the Master Circular on “Basel III Capital Regulations” only.

Yours faithfully,

(Sudha Damodar)
Chief General Manager

Encl: As above