Govt. Exams
Entrance Exams
Securities borrowing and lending allows banks to manage their security portfolios by borrowing/lending government securities.
Basel III prescribes a Countercyclical Buffer ranging from 0.625% to 2.5% of risk-weighted assets during credit booms.
MSF is the rate at which scheduled commercial banks can borrow from RBI against approved securities for short-term liquidity needs.
Basel I, II, and III are progressive international regulatory frameworks for capital adequacy. Currently, Basel III is the most advanced framework.
RBI issues Treasury Bills with a maximum tenure of 364 days. T-Bills are issued at 14-day, 91-day, 182-day, and 364-day intervals.
Cooperative banks are governed by the Banking Regulation Act 1949, State Cooperative Societies Acts, and the Multi-State Cooperative Societies Act 2002.
LCR under Basel III measures a bank's ability to survive a severe liquidity stress scenario lasting 30 days by maintaining sufficient high-quality liquid assets.
Basel III prescribes a minimum CET-1 ratio of 4.5% of risk-weighted assets. India has implemented Basel III norms with additional conservation buffers.
The Financial Action Task Force (FATF) establishes international standards for combating money laundering and terrorist financing. India complies with FATF recommendations.
Tier-2 capital includes subordinated debt, revaluation reserves, and general loan loss provisions. It supplements Tier-1 capital for meeting capital requirements.
