*Research Scholar, Department of Commerce, Vijayanagara Sri Krishnadevaraya University, Ballari, Karnataka, India
**Associate Professor, Department of Commerce and Management, Government First Grade College, Kurugodu, Karnataka, India
Our Economic sustainability considerably depends on banking system due to more than 40% of national savings deployed in bank deposits and which ensures high risk-sensitivity for the banks to manage its financial obligations. Along with this, due to other constraints like competition, market volatility etc. leads to financial crisis for entire economy. In order to cope up from this, a reactive measure has been taken namely, Basel Norms, a globally accepted capital adequacy requirement for banks, was implemented in India by the Reserve Bank of India. In this backdrop, capital adequacy obligations possess critical role in augmenting the banks’ efficacy. So, this study aimed at exploring the understanding of the Basel norms and its impact on the Indian Banking System majorly the changes brought in Basel II and Basel III.
Indian Banking System, RBI, Basel II and III, Capital Adequacy Ratio, Tier 1 capital Ratio
