Understanding Basel Norms And Their Implications
We often come across terms like Basel Norms or even phrases like "XYZ bank has been fined a certain amount for not maintaining the required capital adequacy ratio and thereby violating the Basel Regulations". But, have we ever thought why such norms were introduced? Why are banks mandated by RBI, in India, to adhere to the same? Why is the recent PCA introduced by the RBI in 2017 linked with this norm? Let us explore the BASEL NORMS and the answers to these questions in the subsequent paragraphs.







