India considering extension to Basel II deadline

12 October 2006

India's banking sector is divided over what could be deemed a realistic deadline for Basel II implementation in the country, according to local reports.

The original deadline for implementing the new risk managing systems was set as March 31st 2007 by India's central bank, the Reserve Bank of India (RBI).

However, as that time fast approaches it appears that some banks are becoming increasingly pessimistic about the prospects of being ready on time, prompting the RBI to consider an extension.

"Public sector banks in India may need some more time to put in place the required management information system (MIS) for implementation of Basel II norms, due to large branch network and updation of historical data," confessed M B N Rao of Canara Bank, speaking to India's Financial Express.

"Most of the banks have already initiated measures in this direction. Marginal extension of the deadline is desirable."

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