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NABARD Grade A Basel Norms & Capital — practice questions — page 3

Explore 70 free Basel Norms & Capital questions in NABARD Grade A Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Basel Norms & Capital questions and exercises with answers

Showing questions 61–70 of 70.

Excess CET1 capital may be used towards compliance with the:Read the answer and worked solution →The specific risk capital charge on security receipts is:Read the answer and worked solution →Match each ratio to its floorRead the answer and worked solution →Sort each item by the pillar it sits inRead the answer and worked solution →True or false about Basel capitalRead the answer and worked solution →Order the capital stack from purestRead the answer and worked solution →Fill the gaps in the capital rulesRead the answer and worked solution →Spot the one that does not fitRead the answer and worked solution →Is it a Basel capital requirement?Read the answer and worked solution →Pick the right answer, quicklyRead the answer and worked solution →

Worked practice questions

Excess CET1 capital may be used towards compliance with the:

  1. Liquid ratio
  2. Leverage ratio
  3. Tier 1 ratio
  4. Cash ratio
Show answer and solution

Correct answer: C. Tier 1 ratio

1. CET1 is the highest quality capital there is. 2. Surplus of it can fill a lower quality requirement. 3. It can count towards the 7 per cent Tier 1 ratio. _Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_

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The specific risk capital charge on security receipts is:

  1. 11.5 per cent
  2. 15.5 per cent
  3. 17.5 per cent
  4. 13.5 per cent
Show answer and solution

Correct answer: D. 13.5 per cent

1. The charge matches a 150 per cent risk weight. 2. It applies to a bank's holding of security receipts. 3. The charge is 13.5 per cent. _Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_

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Match each ratio to its floor

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Matching pairs
  1. Left
    Minimum CET1
    Right
    5.5 per cent of RWAs
  2. Left
    Minimum Tier 1
    Right
    7.0 per cent of RWAs
  3. Left
    Minimum total cap
    Right
    9.0 per cent of RWAs
  4. Left
    Capital buffer
    Right
    2.5 per cent of RWAs
  5. Left
    CET1 plus buffer
    Right
    8.0 per cent of RWAs
  6. Left
    Total plus buffer
    Right
    11.5 per cent of RWAs
Instructions
Tap a ratio on the left, then tap its figure.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_

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