Banking · Capital Adequacy & Primary Dealers
For Standalone Primary Dealers, inclusion of quarterly profits in Tier 1 Capital is allowed, but the eligible profit is reduced by a fraction of:
- 1The average CRR maintained during the year
- 2The average dividend paid in the last three years✓
- 3The bank rate prevailing at year-end
- 4The previous quarter's operating expenses
Correct answer
The average dividend paid in the last three years
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