RBI to set up panels to implement Basel-II norms
New Delhi: The Reserve Bank will set up a steering committee to implement the new stringent international Basel-II norms on capital adequacy by 2006. According to the bank, it will follow a consultative process while implementing Basel-II norms and move in a gradual, sequential and co-ordinated manner.

Towards this end, the RBI is setting up a steering committee, which in turn will have smaller focused sub-groups for each of the three pillars of Basel-II with members representing interests of all stakeholders.

The three pillars of Basel-II, which offer a new set of standards for establishing minimum capital requirements for banking operations, are capital adequacy, supervisory review and market discipline.
According to the RBI, initially all banks would have to at least adopt a standardised approach for credit risk and basic indicator approach for operational risk. After adequate skills were developed, both in banks and at supervisory level, some banks may be allowed to migrate to the internal rating-based approach (IRB).

By March 31, 2005, the banks would have to set aside capital for market risks on securities included in the trading category, open gold position, open foreign exchange position, trading position in derivatives and derivatives entered into for hedging trading book exposures.
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Prudential Bank to clear payments up to Rs.20, 000
Hyderabad: The Prudential Co-op Bank Ltd has said that the Reserve Bank of India has given it permission to make payments up to Rs.20, 000 per depositor. After the payments, 92,000 of the 1,40,000 total number of accounts would be closed. The bank has about 1,600 account holders who deposited Rs.1 lakh or more. One third of these account holders have deposited Rs.2 lakh and above.

In a separate release, the Charminar Co-Operative Urban Bank Ltd has asked the depositors, who haven't claimed their money, to submit their claim forms immediately. The depositors have been asked to contact the respective branches for further details.
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