WBCS.LIVE practice question

What is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) mandated by the RBI for Indian banks under Basel III?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 8%
  2. 9%
  3. 10.5%
  4. 11.5%

Correct answer and explanation

Correct answer: 9%

Explanation: āœ… Correct Answer: B) 9% šŸ“š Explanation: The Basel III norms are international regulatory frameworks developed to improve risk management and capital adequacy in the banking sector. While the global Basel committee mandates a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 8%, the Reserve Bank of India strictly mandates a higher minimum CRAR of 9% for all Indian scheduled commercial banks to ensure a stronger safety buffer.