📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    The minimum Common Equity Tier 1 (CET1) capital for

    banks in India as specified by RBI is:
    A 4.5% Correct Answer Incorrect Answer
    B 5.0% Correct Answer Incorrect Answer
    C 5.5% Correct Answer Incorrect Answer
    D 6.0% Correct Answer Incorrect Answer
    E 6.5% Correct Answer Incorrect Answer

    Solution

    Minimum Common Equity Tier 1 (CET1) for banks in India is 5.5%. Tier 1 capital = common equity tier 1 (CET1) capital+ Additional Tier 1 capital (AT1) Common equity Tier 1 comprises of a bank’s core capital and includes common shares, stock surpluses resulting from the issue of common shares, retained earnings, common shares issued by subsidiaries and held by third parties. Additional Tier 1 capital is defined as those uncommon instruments which are eligible to be included in this tier.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question