Accounting · Banking Regulations and Basel Norms
What is the primary objective of the Pillar 3 Disclosure Requirements prescribed by RBI under Basel-III guidelines for Indian banks?
- 1To establish minimum capital adequacy requirements for banks operating in India.
- 2To promote market discipline by mandating public disclosure of key information on capital, risk exposures, and risk assessment processes.✓
- 3To ensure that banks have adequate Tier 1 Capital to absorb potential losses.
- 4To standardize the method of calculation for risk-weighted assets and capital.
Correct answer
To promote market discipline by mandating public disclosure of key information on capital, risk exposures, and risk assessment processes.
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