Start learning 50% faster. Sign in now
As a matter of prudence, RBI has stipulated that scheduled commercial banks operating in India shall maintain a minimum total capital (MTC) of 9% of total risk weighted assets (RWAs) i.e., capital to risk weighted assets (CRAR). This will be further divided into different components I. Common Equity Tier 1 (CET1) capital must be at least 5.5% of risk-weighted assets (RWAs) i.e., for credit risk + market risk + operational risk on an ongoing basis. II. Tier 1 capital must be at least 7% of RWAs on an ongoing basis. Thus, within the minimum Tier 1 capital, Additional Tier 1 capital can be admitted maximum at 1.5% of RWAs. III. Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 9% of RWAs on an ongoing basis. Thus, within the minimum CRAR of 9%, Tier 2 capital can be admitted maximum up to 2%. IV. If a bank has complied with the minimum Common Equity Tier 1 and Tier 1 capital ratios,then the excess Additional Tier 1 capital can be admitted for compliance with the minimum CRAR of 9% of RWAs. V. In addition to the minimum Common Equity Tier 1 capital of 5.5% of RWAs, banks are also required to maintain a capital conservation buffer (CCB) of 2.5% of RWAs6 in the form of Common Equity Tier 1 capital
Which of the following is the oldest thermal project of Uttar Pradesh?
Which of the following countries is the largest producer of tea in the world?
How much monetary penalty did RBI impose on RAR Fincare Limited, Chennai for non-compliance with its directions?
Which sector contributed the highest amount to the informal Gross Value Added (GVA) in FY23?
Mil Mi -26 is which kind of Helicopter in the IAF?
Which nation is being aided by the Indian government to combat locusts, including the supply of 40,000 liters of Malathion, an environmentally friendly ...
Right to move freely throughout the territory of India' is a fundamental right under _________ of the Constitution of India.
Recently India’s premier gas distributor _______has set a target of net zero carbon emissions by the year 2040?
Indra is a joint military exercise between the armed forces of India and which country?
Mathura is also known as?