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Tier II capital counted for CRAR may not exceed what share of Tier I?

A400 per cent
B100 per cent
C300 per cent
D200 per cent
Answer & Solution
Correct answer: B. 100 per cent
1. The supplementary layer cannot dwarf the core. 2. It is capped against total Tier I capital. 3. The cap is 100 per cent of Tier I. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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