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Perpetual debt instruments alone may form what share of Tier I?

A25 per cent
B35 per cent
C45 per cent
D15 per cent
Answer & Solution
Correct answer: D. 15 per cent
1. PDI is a bond or debenture without a maturity date. 2. Old innovative instruments count inside the same ceiling. 3. That ceiling is 15 per cent of Tier I. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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