Newsletter Nov 2006: Two year Basel II delay for Indian banks

MUMBAI – Hints since the spring of a postponement in India’s implementation of the new Basel capital standard for banks (Basel II) proved accurate at the end of October. The Reserve Bank of India (RBI), the country’s central bank, announced in the mid-term review of its annual policy statement, for 2006-2007, that it is delaying its Basel II implementation timetable by two years for most of its 85 scheduled commercial banks (accounting for 78% of total assets).