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?

Q: Answer-Public sector banks are required to maintain how much % of CRAR(Capital to Risk Weighted Assets Rati...

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 banks capital in relation to its risk weighted assets and current liabilities. It is formulated and supervised by the RBI.