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      Question

      Public sector banks are required to maintain how much %

      of CRAR(Capital to Risk Weighted Assets Ratio) to protect depositors and promote the stability and efficiency of financial systems?
      A 15% Correct Answer Incorrect Answer
      B 9% Correct Answer Incorrect Answer
      C 11% Correct Answer Incorrect Answer
      D 14% Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      All the Public sector banks are required to maintain 9% of the Capital to Risk Weighted Assets Ratio to prevent commercial banks from taking excess leverage and becoming insolvent in the process. It is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities. It is formulated and supervised by the RBI.

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