As per the decision taken by the Govt of India, all the Public Sector Banks (PSBs) will be recapitalised over the next two years so that they can maintain a capital Adequacy Ratio (CAR) of.....

BANKING GENERAL KNOWLEDGE

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

As per the decision taken by the Govt of India, all the Public Sector Banks (PSBs) will be recapitalised over the next two years so that they can maintain a capital Adequacy Ratio (CAR) of____

A	9%
B	12%
C	11%
D	0.22

Explanation:

Detailed explanation-1: -Nationalized banks are those in which government has more than 50% shareholding. There are a total of 12 public sector banks in India today. These banks were nationalised and are currently run by the government.

Detailed explanation-2: -In India, the Reserve Bank of India (RBI) mandates the CAR for scheduled commercial banks to be 9%, and for public sector banks, the CAR to be maintained is 12%.

Detailed explanation-3: -The basic approach of capital adequacy framework is that a bank should have sufficient capital to provide a stable resource to absorb any losses arising from the risks in its business. Capital is divided into tiers according to the characteristics/qualities of each qualifying instrument.

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