Urban co-operative banks in Tier 2 to 4 must hold a CRAR of:
A32 per cent
B42 per cent
C12 per cent
D22 per cent
Answer & Solution
Correct answer: C. 12 per cent
1. Larger banks are held to a higher standard.
2. The measure is again against risk weighted assets.
3. Their floor is 12 per cent.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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