Govt. Exams
Entrance Exams
Common Equity Tier 1 (CET1), consisting of paid-up capital and retained earnings, is the highest quality Tier 1 capital.
RBI has a dedicated regulatory framework for NBFCs, with stricter norms for Si-NBFCs to maintain systemic stability.
FSDC, chaired by the Finance Minister, coordinates between RBI, SEBI, IRDA, and other financial regulators to ensure financial stability.
The Microfinance Institutions (Development and Regulation) Act, 2006 specifically regulates MFIs, focusing on transparency and consumer protection.
The Nayak Committee (2013) examined shadow banking entities and recommended a regulatory framework for NBFCs engaged in banking activities.
Basel III requires a minimum CET1 capital ratio of 4.5%, with an additional capital conservation buffer of 2.5%, bringing the total to 7%.
Securitization is the process of converting illiquid assets (like loans) into tradable securities that are backed by the underlying cash flows of those assets.
RBI guidelines specify Rs. 10 lakh limit for agriculture sector and Rs. 1 crore for micro-enterprises under Priority Sector Lending (as of 2024).
SLF is a standing facility introduced by RBI allowing scheduled banks to borrow funds against government securities, providing liquidity at a specified spread over the policy rate.
RBI's multiple guidelines including IT Risk Management and Operational Risk frameworks mandate banks to have robust business continuity and disaster recovery plans to ensure service continuity.
