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Question
"Capital adequacy norms" is laid down by _________.
"Capital adequacy norms" is laid down by _________.
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Solution
The correct option is C RBI
RBI lays down and regulates the capital adequacy norms in India. Capital adequacy means the amount of capital a bank or a financial institution is required to maintain. This amount is fixed by RBI in India. The first Narasimhan committee recommended the maintenance of the capital adequacy ratio. It is necessary to maintain the fixed CAR because it depicts the solvency of the bank. As per the circular, Indian scheduled commercial banks need to maintain a capital adequacy ratio of 9%. However, Indian public sector banks need to maintain a ratio of 12%.Hence, option (C) is the correct answer.
RBI lays down and regulates the capital adequacy norms in India. Capital adequacy means the amount of capital a bank or a financial institution is required to maintain. This amount is fixed by RBI in India. The first Narasimhan committee recommended the maintenance of the capital adequacy ratio. It is necessary to maintain the fixed CAR because it depicts the solvency of the bank. As per the circular, Indian scheduled commercial banks need to maintain a capital adequacy ratio of 9%. However, Indian public sector banks need to maintain a ratio of 12%.
Hence, option (C) is the correct answer.
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