Central banks had to contend with the question of how much QE to do. One approach was to use a Taylor rule to calculate what the (negative) interest rate would have been according to the Taylor rule, and then to calculate how much a relevant quantity (say the monetary base) would have had to be increased to attain that interest rate.
We have gone a step further than the Basel I requirement and have required the banks in India to maintain capital charge for market risks on their ‘Available for Sale’ portfolio also with effect from March 2006. We continue to see considerable merit in pursuing a policy of gradualism in harmonising our regulations with the global standards.