Question

    Public sector banks are required to maintain how much % of CRAR(Capital to Risk Weighted Assets Ratio) to protect depositors and promote the stability and efficiency of financial systems?

    A 15% Correct Answer Incorrect Answer
    B 9% Correct Answer Incorrect Answer
    C 11% Correct Answer Incorrect Answer
    D 14% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    All the Public sector banks are required to maintain 9% of the Capital to Risk Weighted Assets Ratio to prevent commercial banks from taking excess leverage and becoming insolvent in the process. It is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities. It is formulated and supervised by the RBI.

    Practice Next
    ×
    ×