Just like banks have to maintain a stipulated capital adequacy ratio similarly non-banking finance companies NBFCs are also required to do so. What is the minimum stipulation for NBFCs with asset size of Rs.100 crore and above?

BANKING GENERAL KNOWLEDGE

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

A	15 percent
B	12 percent
C	10 percent
D	8 percent

Explanation:

Detailed explanation-1: -The baseline scenario is projected for one year ahead, based on assumptions of business continuing under usual conditions. The capital adequacy ratio of the sample NBFCs in September 2022 stood at 26.0 per cent and the GNPA ratio at 4.0 per cent.

Detailed explanation-2: -Capital Adequacy Ratio for NBFC– Microfinance Institution Every new NBFC – MFI must maintain a Capital adequacy ratio of at least 15% of its aggregate risk-weighted assets, which shall include Tier I and Tier II Capital.

Detailed explanation-3: -As per the extant regulations, every NBFC is required to maintain a minimum capital ratio of 15 per cent of its aggregate risk-weighted assets (including both on and off-balance sheet items). To further strengthen their capital position, the PCA framework for NBFCs will be made effective from October 1, 2022.

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