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Eligible total capital is made up of Tier I capital and:

ATier II capital
BTerm II capital
CTrust II capital
DTotal II capital
Answer & Solution
Correct answer: A. Tier II capital
1. Capital funds are defined in two layers. 2. The first layer is the core, Tier I. 3. The second layer is Tier II. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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