General Knowledge · Banking Regulations
Regarding the Basel III Capital Regulations in India, which of the following statements represents the regulatory requirement enforced by the Reserve Bank of India for Scheduled Commercial Banks?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Counter-Cyclical Capital Buffer is a permanent, static requirement of 2.5 percent that never changes regardless of growth cycles.
- 2The Capital Conservation Buffer is fixed at 5 percent of Risk-Weighted Assets and must be maintained solely through Tier 2 capital.
- 3Indian banks are exempt from Basel III norms if they have a total asset size of less than 50000 crore rupees and focus only on priority sector lending.
- 4The Common Equity Tier 1 (CET1) capital must be at least 5.5 percent of Risk-Weighted Assets, and the total Capital Conservation Buffer must be 2.5 percent, comprised of CET1 capital.✓
Correct answer
The Common Equity Tier 1 (CET1) capital must be at least 5.5 percent of Risk-Weighted Assets, and the total Capital Conservation Buffer must be 2.5 percent, comprised of CET1 capital.
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