RBI/2014-15/90
DBOD.No.BP.BC.5/21.06.001/2014-15

July 1, 2014

All 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 DBOD.BP.BC.9/21.06.001/2013-14 dated July 1, 2013, consolidating therein the guidelines issued to banks till that date on NCAF.

2. The aforesaid Master Circular has been suitably updated by incorporating relevant instructions issued upto June 30, 2014 listed in Annex 16 and has been placed on the RBI website (/en/web/rbi).

3. This Master Circular does not cover the guidelines on Basel III capital regulations which are consolidated in the Master Circular DBOD.No.BP.BC.6/21.06.201/2014-15 dated July 1, 2014 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 upto March 31, 2017 as stated in the Master Circular on “Basel III Capital Regulations” referred 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,

(Sudarshan Sen)
Chief General Manager

Encl: As above