As per the latest RBI regulations (2024), what is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement for Scheduled Commercial Banks?
A9.5%
B10.5%
C11.5%
D12.5%
Correct Answer:
B. 10.5%
Explanation:
RBI mandates a minimum CRAR of 10.5% for Scheduled Commercial Banks, which includes Common Equity Tier 1 (CET1), Additional Tier 1, and Tier 2 capital.
Which of the following is NOT a component of Broad Money (M3) in India?
ACurrency with the public
BDemand deposits with banks
CTime deposits with banks
DCryptocurrencies held by individuals
Correct Answer:
D. Cryptocurrencies held by individuals
Explanation:
M3 includes currency, demand deposits, and time deposits with banks. Cryptocurrencies are not included in the official money supply measurement by RBI.
Which regulatory framework ensures that banks maintain adequate capital buffers above minimum requirements?
ABasel I Framework
BBasel III Framework (Capital Conservation Buffer and Countercyclical Buffer)
CDodd-Frank Act
DPayment and Settlement Systems Act
Correct Answer:
B. Basel III Framework (Capital Conservation Buffer and Countercyclical Buffer)
Explanation:
Basel III introduced the Capital Conservation Buffer (2.5%) and Countercyclical Buffer to ensure banks maintain capital above minimum levels during good times.