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The minimum Common Equity Tier 1 ratio is:
A7.5 per cent
B5.5 per cent
C4.5 per cent
D6.5 per cent
Answer & Solution
Correct answer: B. 5.5 per cent
1. CET1 is the purest form of bank capital.
2. It carries its own floor inside the 9 per cent.
3. That floor is 5.5 per cent of risk weighted assets.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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