Question

Small Finance banks need to maintain what percentage of Capital adequacy ratio in order to meet one of the conditions to be eligible to get into Authorized Dealers-Category I for foreign exchange transactions as per the recent RBI Circula

Q: Answer-Small Finance banks need to maintain what percentage of Capital adequacy ratio in order to meet one...

Eligibility norms for Small Finance Banks for Authorised Dealer Category-I The bank should have completed at least two years of operations as Authorised Dealer Category-II. The bank should have been included in the Second Schedule to RBI Act 1934. It should have a minimum net worth of 500 crore. Its CRAR should not be less than 15. The net NPAs of the bank should not exceed 6, during previous four quarters. It should have made profit in the preceding two years. It should not have defaulted in maintenance of CRR SLR during previous two years. It should have sound internal control systems. It should not have any major regulatory and supervisory concerns