Entrance Exams
Govt. Exams
Buffer = Maintained CET1 - Required CET1 = 7.5% - 5.5% = 2.0%
CET1 Ratio = (4,200 / 80,000) × 100 = 5.25%, which exceeds the 4.5% minimum. Bank is compliant.
RBI's Integrated Ombudsman Scheme 2021 provides a maximum compensation limit of ₹10 lakh for customer grievances.
The UNBFC framework aims to bring informal financial service providers under regulatory oversight to protect consumers and ensure financial stability.
Tier 1 capital (Common Equity Tier 1 and Additional Tier 1) can absorb losses and is the highest quality capital. Tier 2 capital may have maturity dates and subordination features.
RBI guidelines recommend banks allocate at least 10% of their IT budget for cybersecurity measures and infrastructure resilience.
NIM improves when lending rates increase (higher interest income) or deposit rates decrease (lower interest expense), or both. This widens the spread.
Under the PCA framework, a bank is placed under regulatory action if its CAR falls below 9%, which is below the minimum requirement of 10.5%.
The CCyB is a macroprudential tool requiring banks to hold additional capital (0-2.5% of RWA) during periods of rapid credit expansion, enabling them to lend counter-cyclically during downturns.
Increase in basis points = 120 bps = 1.2%. Increase in NPA amount = 1.2% of ₹80,000 crores = ₹960 crores