World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

For the purpose of WTO commitments of 12 branches in a year, the off site ATMs opened by foreign banks are not taken into account.

WTO Secretariat's Report, page 144, paragraph 74

According to the report, the RBI has been implementing "advanced approaches" to evaluate risk under Basel II since July 2009.

11. 
    Is the RBI in the process of implementing Basel III and, if yes, what is the timeline of such implementation and will it diverge in any significant way from the Basel III guidelines?
    

Reply: So far as implementation of Basel III in India is concerned, availability of adequate amount of capital, both in terms of quality and quantity provides significant comfort to begin implementation of the new framework as per the time schedule fixed by the Basel Committee on Banking Supervision (BCBS). Nevertheless, RBI has taken a number of initiatives to ensure smooth transition of the banking sector to Basel III framework. In order to raise awareness among banks about Basel III, RBI has been regularly briefing the chief executives of banks since RBI became member of the BCBS in 2009. These meetings also provide an opportunity for RBI to assess the level of preparedness of banks to implement Basel III and clarify any issues which they may have in this regard. Other initiatives taken by RBI include organising various training programmes through its training establishments, seminars, meetings and participation in seminars organized by the Indian Banks' Association (IBA) and other self regulatory bodies.

The BCBS is monitoring the impact of Basel III proposals through the semi annual Quantitative Impact Study (QIS) on banks. Ten Indian banks are participating in this QIS exercise. The outcome of the QIS will not only give an idea about the impact of the Basel III rules on Indian banks, but will also help in enhancing the understanding of banks about the subtle nuances of various aspects of Basel III proposals.

In the meantime, RBI is examining the Basel III regulations and will issue guidelines to the extent applicable for banks operating in India in due course. RBI would adhere to the internationally agreed phase in period starting in 1 January 2013 for implementation of Basel III.

WTO Secretariat's report, page151, paragraphs 101

Indian Government's 'Insurance Laws (Amendment) Bill 2008' seeks to raise the FDI cap from existing 26% to 49%.

11. 
    Could India confirm when it will enter into force?
    

Reply: The Government of India has introduced the Insurance Laws (Amendment) Bill, 2008, in Parliament. The Bill inter alia provides for enhancement of holdings of equity shares by a foreign company, in Indian insurance companies, from 26% to 49%. Presently, the Bill is under consideration in Parliament.

WTO Secretariat's report, page 155, paragraphs 115

According to the Secretariat's report, India implements several foreign equity restrictions on FII's into securities sector, such as 10% ownership cap for individual FIIs and 24% equity cap for all FII's, as well as 26%/23% caps for investments into stock exchanges.

11. 
    Could India confirm that these restrictions are in place and are in conformity with its GATS commitments?