Mumbai, May 20 -- The Reserve Bank of India (RBI) on Tuesday released directions on commercial banks' capital adequacy. RBI noted that Pillar 3 of the Basel Framework aims to promote market discipline through regulatory disclosure requirements. These requirements enable market participants to access key information relating to a bank's regulatory capital and risk exposures in order to increase transparency and confidence about a bank's exposure to risk and the overall adequacy of its regulatory capital.

The proposed norms said Pillar 3 should apply at the top consolidated level of the banking group to which the capital adequacy framework applies. If a bank is not the top consolidated entity in the banking group, Pillar 3 disclosures shal...