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RBI/2018-19/106
DBR.BP.BC.No.20/21.06.201/2018-19
January
10, 2019
All Scheduled Commercial Banks
(Excluding RRBs and LABs)
Dear Sir/Madam,
Basel III Capital Regulations-
Review of transitional arrangements
Please refer to para 4.5
‘Transitional Arrangements’, para 15.2.2 of Part D ‘Capital Conservation
Buffer Framework’ and para 2.3 of Annex 16 of the Master Circular, DBR.No.BP.BC.1/21.06.201/2015-16 dated
July 1, 2015 on ‘Basel III Capital Regulations’.
2. It has been decided to defer
the implementation of the last tranche of 0.625% of Capital Conservation
Buffer (CCB) from March 31, 2019 to March 31, 2020. Accordingly, minimum
capital conservation ratios in para 15.2.2 of Part D ‘Capital Conservation
Buffer Framework’ as applicable from March 31, 2018 will also apply from
March 31, 2019 till the CCB attains the level of 2.5% on March 31, 2020.
3. Further, the pre-specified
trigger for loss absorption through conversion / write-down of Additional
Tier 1 instruments (PNCPS and PDI) shall remain at 5.5% of RWAs and will
rise to 6.125% of RWAs on March 31, 2020.
Yours faithfully
(Saurav Sinha)
Chief General Manager-in-Charge
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