This advisory by RBI has come up during the mid-term review of annual policy statement for the year 2007-08 — Application of Capital Adequacy norms to Regional Rural Banks, said the central bank in a notification here.   At present, RRBs are outside the CRAR framework. Accordingly, all Regional Rural Banks are advised to disclose their CRAR as on March 31, 2008 and thereafter every year as 'Notes on Accounts' to their balance sheets. The roadmap for achieving the desired level of CRAR norms would be communicated in due course.

The balance sheet assets and non-funded or off-balance sheet items will be assigned weights and banks have to compute the ratio of their capital funds to the aggregate of risk weighted assets.