अभिकथन (Assertion): पूंजी पर्याप्तता के मानकीकृत दृष्टिकोण के तहत खुदरा ऋणों (retail loans) के लिए जोखिम-भारित आस्तियां (risk-weighted assets) आम तौर पर गैर-रेटेड कॉर्पोरेट एक्सपोज़र की तुलना में कम होती हैं। तर्क (Reasoning): खुदरा पोर्टफोलियो विविधीकरण के सिद्धांत से लाभान्वित होते हैं क्योंकि एक बड़े कॉर्पोरेट डिफॉल्ट की तुलना में एकल व्यक्तिगत उधारकर्ता का डिफॉल्ट बैंकिंग संस्थान की समग्र साख को महत्वपूर्ण रूप से प्रभावित नहीं करता है।

A large Non-Banking Financial Company (NBFC) specializing in micro-credit has seen exponential growth over the last 5 years. With an asset size now exceeding 50,000 Crore and a customer base of 10 million, the management is considering applying for a conversion into a Small Finance Bank (SFB). The move is motivated by the desire to access low-cost public deposits and provide a wider range of financial products. However, the transition involves significant regulatory hurdles, including a change in the capital structure and compliance with stringent priority sector lending (PSL) norms. Which of the following is the most significant operational change the NBFC will face immediately upon its conversion into an SFB?

Capital adequacy norms are central to the stability of banks because they require institutions to maintain sufficient capital relative to risk-weighted exposures. The main policy objective of capital adequacy is to: