The Presidents/Chief Executives
All Banks/ DFIs

Dear Sirs / Madam,

Minimum Capital Requirements - Implementation of Basel II

     Please refer to BSD Circular No 2 of 2007 dated March 26, 2007 on the above subject.

      In view of the difficulties faced by the banks / DFIs in collection of data on the subject, it has been decided to allow a relaxation of 15 days in the 30 days deadline for submission of the capital adequacy reports as required under above referred circular for the forthcoming two quarters. The banks/ DFIs will submit the Basel II based quarterly statements on calculation of their capital adequacy ratios, consolidated as well as on standalone basis, on the prescribed formats within 45 days from the end of the quarters ending 31 December 2007 and 31 March 2008 only. From the quarters ending 30th June 2008 and onward, the banks/ DFIs shall continue to follow the timeline as communicated under the above referred circular.

      The banks / DFIs are further advised to streamline their process for timely submission of the reports on calculation of capital adequacy ratios.

      All other instructions on the subject, shall, however remain unchanged.

      Kindly acknowledge the receipt.