All Regional Rural Banks or RRBs are, therefore, advised to achieve and maintain a minimum CRAR of.....on an ongoing basis.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

All Regional Rural Banks or RRBs are, therefore, advised to achieve and maintain a minimum CRAR of____on an ongoing basis.

A	15%
B	11%
C	5%
D	9%

Explanation:

Detailed explanation-1: -RRBs are required to maintain a minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9 per cent on an ongoing basis.

Detailed explanation-2: -Under Basel-III, banks have to maintain a minimum capital adequacy ratio of 8%, as of 2022. However, the minimum capital adequacy ratio, including the capital conservation buffer, is 10.5%.

Detailed explanation-3: -Yes, the Payment banks have to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

Detailed explanation-4: -3. UCBs shall maintain minimum CRAR as under: Tier 1 UCBs shall maintain, as hitherto, a minimum CRAR of 9 per cent of Risk Weighted Assets (RWAs) on an ongoing basis. Tier 2 to 4 UCBs shall maintain a minimum CRAR of 12 per cent of RWAs on an ongoing basis.

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