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A Tier 1 urban co-operative bank must hold a minimum CRAR of:
A7 per cent
B9 per cent
C3 per cent
D5 per cent
Answer & Solution
Correct answer: B. 9 per cent
1. The floor is set against risk weighted assets.
2. It must be met on an ongoing basis.
3. For a Tier 1 bank the floor is 9 per cent.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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