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    Question

    As per the latest 2026 regulatory norms, what is

    the Minimum Capital to Risk-Weighted Assets Ratio (CRAR) that must be maintained by an NBFC in the Middle Layer (NBFC-ML) and Upper Layer (NBFC-UL)?
    A 10% Correct Answer Incorrect Answer
    B 12% Correct Answer Incorrect Answer
    C 15% Correct Answer Incorrect Answer
    D 9% Correct Answer Incorrect Answer
    E 8% Correct Answer Incorrect Answer

    Solution

    The RBI mandates that NBFCs in the Middle and Upper Layers must maintain a minimum CRAR of 15% (comprising Tier I and Tier II capital), where Tier I capital must not be less than 10%. This requirement ensures that NBFCs have a sufficient buffer to absorb potential losses, given their systemic importance compared to the Base Layer

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