As per the Reserve Bank of India's (RBI) four-tiered regulatory framework for…
2024
As per the Reserve Bank of India's (RBI) four-tiered regulatory framework for Urban Cooperative Banks (UCBs), what are the minimum Capital Adequacy Ratio (CAR) requirements for Tier-1 UCBs and Tier 2–4 UCBs, respectively?
- A.
8% for Tier-1 and 10% for Tier 2–4
- B.
9% for Tier-1 and 12% for Tier 2–4
- C.
10% for Tier-1 and 11% for Tier 2–4
- D.
9% for Tier-1 and 10% for Tier 2–4
- E.
10% for Tier-1 and 13% for Tier 2–4
Show answer & explanation
Correct answer: D
Under RBI's four-tier framework for Urban Cooperative Banks, the minimum capital adequacy requirement is 9% for Tier-1 UCBs and 10% for Tier 2 to Tier 4 UCBs.