You are here: Home » Opinion » Letters
Business Standard

Letter to BS: RBI rejected govt offer to apply Basel-III norms to 4 banks

The Basel guidelines were conceived taking into account the requirement of developed economies

Business Standard 

Letter to BS: RBI rejected govt offer to apply Basel-III norms to 4 banks

This refers to “rejected govt proposal to apply Basel-III norms to 4 banks” (November 23). The of India (RBI)’s hard stance over applying Basel norms to banks has been a matter of intense discussion over the last few weeks. Though the is correct in enforcing strict regulatory norms, the importance of relatively easier credit flow to boost growth must not be lost sight of. The Basel guidelines were conceived taking into account the requirement of developed economies. Unlike developed countries, India, as a developing economy, needs a smoother credit ecosystem to bolster growth. Given the resource constraint, it is imperative that all available resources be utilised optimally. Instead of following the international regulatory framework completely, the should devise its own regulatory norms, suited to Indian conditions, by striking a balance between facilitating easier credit and ensuring economic stability.

Sanjeev Kumar Singh, Jabalpur


can be mailed, faxed or e-mailed to:

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg

New Delhi 110 002

Fax: (011) 23720201 · E-mail: letters@bsmail.in

All must have a postal address and telephone number

First Published: Tue, November 27 2018. 00:51 IST
RECOMMENDED FOR YOU