As regards the timeframe for implementation of Basel II framework, the foreign banks operating in India and the Indian banks with foreign branches are required to adopt the Standardised Approach for credit risk and the Basic Indicator Approach for the operational risk, with effect from March 31, 2008. All other commercial banks are required to adopt these approaches not later than March 31, 2009.
Eighth, the regulatory framework in India is increasingly focusing on ensuring good governance through “fit and proper” owners, directors and senior managers of the banks. Transfer of shareholding of five per cent and above requires acknowledgement from the RBI and such significant shareholders are put through a `fit and proper' test.