The rationale for adopting these standards are two fold: One, we cannot remain non-complaint with international standards especially when Indian banks are venturing abroad and our markets are opened for international participants.
Two, even while our financial system is much simpler and does not have much of the features which led to the crisis, we are vulnerable to the contagion from global economy as we are witnessing today and higher defences built under Basel III will provide our financial system the much needed resilience.