These safeguards include a minimum one-year parallel run for each bank, during which the bank will calculate what its risk-based capital requirement would be under Basel II, even though its actual requirement will be determined using the Basel I rules.
The third part relating to policy framework focuses on monetary policy and credit delivery. The fiscal policy insofar as it impacts on the financial sector is also analysed. The fourth part focuses on managing process of reform in its various dimensions and perspective is that of the Reserve Bank of India (RBI).