Question:
Recently, there has been a conflict between RBI and the Govt. over capital norms of banks. Consider the following statements in this regard:
1. Basel norms require banks to have a capital adequacy ratio of 8%.
2. RBI has prescribed banks to have a capital adequacy ratio of more than 8%.
3. Adequate capital enables a bank to sustain unexpected losses without defaulting on its obligations.
Choose the correct statement/s from the codes given below:
A) 1 only
B) 1 and 2 only
C) 3 only
D) 1, 2 and 3
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