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Revaluation reserves rejected from CET1 capital may be counted in:
AEither tier
BNeither tier
CTier 2 only
DTier 1 only
Answer & Solution
Correct answer: B. Neither tier
1. A bank may choose CET1 or Tier 2 for such reserves.
2. But the conditions have to be met either way.
3. If they fail CET1 they fail Tier 2 as well.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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