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Tier 2 capital may be admitted at most up to:
A2 per cent
B3 per cent
C4 per cent
D5 per cent
Answer & Solution
Correct answer: A. 2 per cent
1. Total capital must reach 9 per cent.
2. Tier 1 alone must reach 7 per cent of that.
3. So Tier 2 can fill at most 2 per cent.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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