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Which instrument is eligible for Tier I capital?
ARCPSN
BPNCPS
CPCPSN
DRNCPS
Answer & Solution
Correct answer: B. PNCPS
1. The share must be perpetual and non cumulative.
2. It has to meet the Annex 3 requirements.
3. That instrument is PNCPS.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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