:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

RBI ASKS BANKS NOT TO OFFER STEP UP OPTION FOR TIER-1 BONDS


The Reserve Bank of India has asked banks not to issue Tier-1 and Tier-2 capital instruments with a ‘step up option' so that they conform to Basel-3 norms.

The step up option allows banks to pay a particular coupon rate in the initial years, and then increase the rate in subsequent years.

The Basel Committee on Banking Supervision had proposed that these capital-raising instruments should not have step-ups so that they meet the criteria for inclusion of instruments in the new definition of regulatory capital.

Call option
However, banks can issue Tier-1 or Tier-2 capital with a ‘call option.'

Posted by C.B.O.A., A.P.

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