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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What should be the CRAR of the Infrastructure Finance company?
A
15%
B
20%
C
25%
D
40%
Explanation: 

Detailed explanation-1: -The CRAR of of the company should be at 15% with Tier I capital at 10% and. The minimum credit rating of the company should be at ‘A’ or equivalent of CRISIL, FITCH, CARE, ICRA, BRICKWORK or equivalent rating by any other accrediting rating agencies.

Detailed explanation-2: -NBFCs to be classified as NBFC MFIs are required to maintain a minimum CRAR of 15%.

Detailed explanation-3: -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%.

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