RBI deferred the implementation of Basel III, the global capital norms for banks, by three months to 1st April. Meanwhile, the deadline for the full implementation of the Liquidity Coverage Ratio for banks, which were to kick in from 2015, has been extended till 2019
New Delhi: The finance ministry has requested the Reserve Bank of India (RBI) to relax capital adequacy norms for banks in line with the recommendations made earlier this month by the Basel Committee on Banking Supervision, reports PTI.
“RBI is fully seized of the matter and we have also requested it to look into the issue. We are in conversation with them,” said an official source.
RBI deferred the implementation of Basel III, the global capital norms for banks, by three months to 1st April.
The deadline for the full implementation of the stiff liquidity norms or Liquidity Coverage Ratio (LCR) for banks, which were to kick in from 2015, has been extended till 2019.
Earlier this month, oversight panel Group of Governors and Heads of Supervision (GHOS), which includes representation from India, of the Basel Committee on Banking Supervision decided to ease the LCR regulations.
The Committee, a grouping of top regulators and central bankers, had mooted the stiff liquidity requirements for banks to ring fence as well as prevent financial disruptions.
A major component of the Basel III banking norms, LCR aims to ensure that a bank has an adequate stock of unencumbered high quality liquid assets to meet liquidity needs for a month's stress scenario.
The LCR would be introduced as planned on 1 January 2015, but the minimum requirement would be 60%. The same would be increased by 10 percentage points in the subsequent years to reach 100% on 1 January 2019.
According to GHOS, this graduated approach is designed to ensure that the LCR can be introduced without disruption to the orderly strengthening of banking systems or the ongoing financing of economic activity.
Among others, the panel has approved amendments to LCR rules, including revisions to the definition of high quality liquid assets and net cash outflows.
As per the structure proposed, 99% cent of government holding in the bank will be shifted to the holding company and the government will retain 1% with itself so that it remains a state-owned bank
New Delhi: The government is likely to consider within a few weeks a proposal for setting up a holding company for public sector banks to enable them to raise capital from the market instead of seeking funds from the exchequer, reports PTI.
“We are moving the Cabinet for setting up a holding company for the public sector banks,” said an official source.
It will take 2-3 weeks. There will be one holding company for all public sector banks, sources said.
They said the law ministry’s opinion has been sought for making legislative changes as various acts will have to be synchronised and amendments will be required in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980.
Besides, State Bank of India Act, 1955, and SBI Subsidiaries Act, 1959, will have to be synchronised with the holding company structure.
“Law ministry has to vet the proposal first. Then it will go to cabinet.” the source said.
As per the structure proposed, 99% cent of government holding in the bank will be shifted to the holding company and the government will retain 1% with itself so that it remains a state-owned bank, sources said.
The company can be managed by three to four part-time officials, they added.
The Budget 2012-13 had proposed the setting up of a financial holding company that would help raise resources to meet capital needs of state-owned banks.
The ways to defuse the tension on the LoC in Jammu & Kashmir, which was triggered by the brutal killing of two Indian soldiers by the Pakistan Army, were discussed during a telephonic conversation between the Director Generals of Military Operations of the two sides
New Delhi: Top military commanders of India and Pakistan today agreed not to allow escalation of tensions along the Line of Control (LoC) with the Pakistan Army asking its troops to observe ceasefire strictly and exercise restraint, reports PTI.
The ways to defuse the tension on the LoC in Jammu and Kashmir, which was triggered by the brutal killing of two Indian soldiers by the Pakistan Army, were discussed during a telephonic conversation between the Director Generals of Military Operations (DGMOs) of the two sides.
The Army here said the talks lasted for ten minutes starting 10am and during this there was also an understanding not to allow the situation to escalate.
Pakistan Army DGMO conveyed that orders have been passed to troops to strictly observe the ceasefire and exercise restraint, the Army Headquarters said.
Meanwhile, in Islamabad, the state-run Pakistan Radio claimed the country’s DGMO lodged a strong protest with his Indian counterpart over killing of a Pakistani soldier.
Earlier in the day, Indian Army chief Gen Bikram Singh rejected Pakistani allegations that Indian troops had crossed the LoC and indulged in unprovoked firing, saying any casualty on the other side may have been due to retaliatory firing.
“Our jawans don’t cross LoC. We honour human rights. We fire in retaliation when provoked,” he said in Khairiar in Uttar Pradesh after meeting the family of Lance Naik Hemraj who was beheaded by Pakistani soldiers in a cross-LoC attack in Poonch sector of Jammu and Kashmir on 8th January.
Responding to the Pakistani charge that one of its soldiers was killed in “unprovoked firing” along the LoC, the Army chief said it may have happened during cross-firing.
“These are normal activities that take place at the LoC.
We have retaliated in response to cross-firing,” he said.
Replying to questions, Singh said “the relationship (between the two countries) is got to be seen on what has been going on at the border”.
The Pakistan Army had alleged Indian troops had violated the ceasefire along the LoC late last night and “carried out unprovoked firing” in Hotspring and Jandrot sectors.
On the possibility of getting back the head of Hemraj, which was taken away by Pakistani soldiers, the Army chief said efforts are being made to get it back.
Singh, however, refused to respond to Pakistani Foreign Minister Hina Rabbani Khar’s statement that the Indian Army chief’s comments were ‘provocative’, saying he was yet to read the statement.
He met the family of slain Indian soldier Hemraj and offered his condolences. He assured them that all their requirements will be met.
Meanwhile, the three services chiefs met in the evening to discuss issues including the construction of a national war memorial at India Gate and the setting up of a national defence university at Gurgaon near here.