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    Question

    Small Finance banks need to maintain what percentage of

    Capital adequacy ratio in order to meet one of the conditions to be eligible to get into Authorized Dealers-Category I for foreign exchange transactions as per the recent RBI Circular
    A 9% Correct Answer Incorrect Answer
    B 10% Correct Answer Incorrect Answer
    C 11% Correct Answer Incorrect Answer
    D 13% Correct Answer Incorrect Answer
    E 15% Correct Answer Incorrect Answer

    Solution

    Eligibility norms for Small Finance Banks for Authorised Dealer Category-I

    • The bank should have completed at least two years of operations as Authorised Dealer Category-II.
    • The bank should have been included in the Second Schedule to RBI Act 1934.
    • It should have a minimum net worth of ₹500 crore.
    • Its CRAR should not be less than 15%.
    • The net NPAs of the bank should not exceed 6%, during previous four quarters.
    • It should have made profit in the preceding two years.
    • It should not have defaulted in maintenance of CRR/ SLR during previous two years.
    • It should have sound internal control systems.
    • It should not have any major regulatory and supervisory concerns

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