Indian Banks will have to conform to the guidelines laid out by the Reserve Bank of India for implementation of BASEL III standards from April 1 for which the RBI will issue a notification shortly.
Confirming this at the Bangalore Bankers Club here on Friday, RBI Governor D Subbarao also sought suggestions from banks as to how financial inclusion measures may be implemented across the country.
The BSEL III implementation was pushed back to April 1 from January 1 which was the date decided by the RBI earlier.
Subbarao said that India being a structurally transforming economy, the challenge for banks would be to ensure proper risk management at a time when demand for credit will go up simultaneously with a rise in credit price.
“While previous growth in the country was based on services, future growth will be because of manufacturing which is a credit intensive growth. Also financial inclusion will require more credit,” he said.
“The new banks that will come up because of RBI’s decision to issue banking licences will focus on customer service,” he added.