Indian banks can now issue Tier 2 capital with a minimum original maturity of 5 years as against 10 years previously, the Reserve Bank of India (RBI) said in a notification on Monday, amending some guidelines on Basel III implementation in India.

The RBI said banks can now issue additional Tier 1 capital to retail investors subject to board approval. The RBI also said call options on the additional Tier 1 debt will now be permissible at 5 years versus 10 years earlier.

The revised guidelines will be effective immediately, the notification said. (Reuters)