Question

    What is the indicator for monitoring of Asset Quality in new Prompt Corrective Action by RBI for Scheduled Commercial Banks?

    A Net NPA Ratio Correct Answer Incorrect Answer
    B Tier 1 Leverage Ratio Correct Answer Incorrect Answer
    C Common Equity Tier I Ratio Correct Answer Incorrect Answer
    D Both a and c Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Capital, Asset Quality and Leverage will be the key areas for monitoring in the revised framework of Prompt Correction Action for Scheduled Commercial Banks. Indicators to be tracked for Capital, Asset Quality and Leverage would be CRAR/ Common Equity Tier I Ratio, Net NPA Ratio and Tier I Leverage Ratio 4 respectively

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