What changed
RBI replaced the previous Master Circular dated May 12, 2023 with a new consolidated version as of April 1, 2024. The new circular incorporates all relevant prudential guidelines on Basel III capital adequacy issued up to that date. A list of consolidated circulars is provided in Annex 26.
What it means for you
Banks must now refer to this updated Master Circular for the latest Basel III capital adequacy requirements. The circular ensures all prior guidelines are consolidated into a single reference document, reducing ambiguity. Small Finance Banks and Payments Banks should continue to follow their separate licensing and operating guidelines.
What you must do
- Replace the previous May 2023 Master Circular with this updated version for compliance.
- Review Annex 26 to identify any newly consolidated circulars affecting your bank.
- Ensure your capital adequacy frameworks align with the latest Basel III guidelines as of April 1, 2024.
- If you are an SFB or PB, continue to follow your specific licensing and operating guidelines for capital adequacy.
Who it affects
All Scheduled Commercial Banks (excluding Small Finance Banks, Payments Banks, and Regional Rural Banks), Compliance and risk management teams, Capital planning and treasury departments
Does this Master Circular apply to Small Finance Banks?
No, Small Finance Banks and Payments Banks must refer to their respective licensing and operating guidelines issued by RBI for prudential guidelines on capital adequacy.
What is the effective date of this updated Master Circular?
The circular is dated April 1, 2024, and consolidates guidelines issued up to that date.
Where can I find the list of circulars consolidated in this Master Circular?
The list is provided in Annex 26 of the Master Circular.