Multiple choice

The minimum capital to be retained by banks in the form of capital adequacy ratio, prescribed by Basel Committee, is

  1. 6% of the risk weighted assets

  2. 7% of the risk weighted assets

  3. 8% of the risk weighted assets

  4. 8% of the assets and liabilities of the bank
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct Answer: 8% of the risk weighted assets As per RBI Guidelines, Indian banks will have to maintain their capital adequacy ratio at 9 per cent as against the minimum recommended requirement of 8 per cent as per Basel Committee's requirements.

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