Circular 2025
RBI Master Circular — Basel III Capital Regulations (updated annually)
Issued by Reserve Bank of India
Effective: 1 Apr 2027
Plain-English summary
In order to integrate the current regulatory regime, the Indian banking sector is subject to a dual track of the Basel III compliance process, whereby banks have to adhere to the existing baseline targets as well as prepare themselves for the upcoming structural reforms. Currently, the existing regulations contained in the April 1, 2025 Master Circular are still valid, in which Scheduled Commercial Banks need to ensure that their Minimum Total Capital amounts to 11.5% of Risk-Weighted Assets, including 9% baseline Capital Adequacy Ratio and 2.5% Capital Conservation Buffer. On the other hand, banks are also in the execution stage of the Capital Charge for Credit Risk – Standardised Approach Directions, 2026. The new rulebook entails the use of very detailed risk weight classification schemes for retail, corporate, and real estate sectors in order for India to become in line with international "Basel III Endgame" standards, all systems being mandatory and effective by April 1, 2027.
Who it applies to
Banking
Topics
Prudential & Capital
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