The adoption of IRB Approach may be permitted by RBI in due course after adequate skills are developed, both in banks and at supervisory levels. Implementation of the simplified approaches also requires preparation on the part of the banks, banking regulators and the rating agencies.
Banks have to gather data relating to the rated exposures  1  The Basel Committee on Banking Supervision is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1975.