The Reserve Bank of India is coming up with detailed guidelines on the Basel-II shortly. These are the norms every Indian bank will have to comply with.
A major change will be brought about by the new norms and banks would no longer need to assign 9% risk weightage on all classes of assets. Indeed, they would have to provide capital based on the credit assessment of the rated asset. This could vary from as low as 20% for AAA-rated assets to 150% for assets rated BB and below.
Mumbai, Maharashtra, India
