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The Capital Conservation Buffer is fixed at:
A4.5 per cent
B2.5 per cent
C1.5 per cent
D3.5 per cent
Answer & Solution
Correct answer: B. 2.5 per cent
1. The buffer sits on top of the minimum CET1 ratio.
2. It must be held in the form of CET1 capital.
3. It is 2.5 per cent of risk weighted assets.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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