Reserve Bank of India sticks with planned capital rule easing
The Reserve Bank of India (RBI) isn't budging on its plan to make capital rules a bit easier for banks, even after industry groups pushed back.
The proposed revision removes the additional qualifying condition related to bad loan provisions.
But don't worry, banks still need to pass strict audits or reviews to make sure those profits are real.
Industry fears volatility, RBI cites audits
The RBI says the update gives a clearer picture of banks' financial strength and doesn't mess with their net profit numbers.
Some in the industry are worried this could make bank profits look more up and down, thanks to things like festive season spikes or big global events and might encourage risky lending when times are good.
The RBI's answer? Careful audits and compliance checks should keep everything in check and reflect banks' true stability.