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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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