The government has set up a high-power committee under the Financial Stability and Development Council (FSDC) to find ways for the banking sector to comply with Basel-III capital norms. The decision was taken at a sub-committee meeting of FSDC. RBI Governor Raghuram Rajan chaired the meeting. An RBI release said the sub-committee discussed the capital requirements of the banking sector over the next five years in view of the Basel-III regulations and requirements for supervisory capital and decided to set up a high-powered inter-regulatory committee to explore ways of enabling banks to meet these requirements. The meeting also discussed implementing non-legislative recommendations of Financial Sector Legislative Reforms Commission and setting up of a repository for investors and about ways for setting up an effective resolution regime for the financial sector. Issues of greater harmonisation of regulations across sectors for similar activities were also taken up.
