The Pillar 3 prescribes public disclosures of information on the affairs of the banks to enable effective market discipline on the banks’ operations. 1  Enhancing Risk Management Under Basel II; Remarks by Ms. Susan Schmidt Bies; at the Risk USA 2005 Congress on June 8, 2005. BIS Review 108/2007  3  10.
As you are aware, RBI has already issued the guidelines for the new capital adequacy framework in regard to Pillar 1 and Pillar 3 on April 27, 2007. As regards Pillar 2, the banks have been advised to put in place an ICAAP, with the approval of the Board.