BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Innovative perpetual debt instrument, 10 years
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Non-redeemable Cumulative Capital Instrument, 10 years
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Perpetual preference shares, 15 years
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Redeemable preference shares, 15 years.
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Detailed explanation-1: -1.2 Elements of Tier II capital: The elements of Tier II capital include undisclosed reserves, revaluation reserves, general provisions and loss reserves, hybrid capital instruments, subordinated debt, bonds issued to Employees under VRS and investment reserve account.
Detailed explanation-2: -Banks shall maintain a minimum capital to risk weighted assets ratio of 9%.
Detailed explanation-3: -Tier 1 capital is the primary funding source of the bank. Tier 1 capital consists of shareholders’ equity and retained earnings. Tier 2 capital includes revaluation reserves, hybrid capital instruments and subordinated term debt, general loan-loss reserves, and undisclosed reserves.
Detailed explanation-4: -Paytm Payments Bank, India Post Payments Bank, Fino Payments Bank and Aditya Birla Payments Bank have also launched services.