Multiple choice

Capital Adequacy Norms declared in the year, 1996, is applicable to

  1. Foreign Banks

  2. Co-operative Banks

  3. Private Sector Banks

  4. Nationalized Bank
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Capital Adequacy Norms announced in 1996 (based on Basel I norms) were made applicable to Nationalized Banks (Public Sector Banks) as a priority, to strengthen their capital base. While foreign banks, private sector banks, and cooperative banks also came under the ambit later, the 1996 norms initially focused on nationalized banks which had the largest market share and needed regulatory compliance.

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