RBI governor announces Basel III adoption timeline

Reserve Bank of India (RBI) Governor Duvvuri Subbarao recently announced the Basel III implementation schedule that the nation's lending institutions will have when speaking at the Bankers Club meeting that happened on March 22, 2013.

Reserve Bank of India (RBI) Governor Duvvuri Subbarao recently announced the Basel III implementation schedule that the nation's lending institutions will have when speaking at the Bankers Club meeting that happened on March 22, 2013. 

He stated that these banks will be required to start adopting the capital guidelines on April 1, compared to the previous date of January 1, according to New York Daily News. He noted that borrowing costs will also grow more expensive. As a result of this changed timeline, the nation's lending institutions will have another four months to meet the requirements. 

The RBI official also noted that credit will become more expensive as the nation's economy is in the midst of deriving more of its gross domestic product from manufacturing instead of services, ENS Economic Bureau reports. 

He noted that the nation's factories will be a major driver of the economy, but stated that these require substantial capital to operate, according to the news source. This combination of more stringent rules for banks and a growing demand for loans from manufacturers could make risk management efforts more difficult for lending institutions affected by the regulatory regime. 

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