Under the regulatory guidelines of the Reserve Bank of India, what is the mandatory minimum Capital to Risk-Weighted Assets Ratio (CRAR) that scheduled commercial banks (excluding local area banks and payments banks) are generally required to maintain?

💡 Solution & Explanation

Scheduled commercial banks in India are statutorily required under Basel III norms to maintain a minimum Capital to Risk-Weighted Assets Ratio of nine percent, which functions alongside a progressively phased Capital Conservation Buffer. Other ratios mentioned do not reflect the benchmark core capital adequacy stipulations mandated by the Reserve Bank of India.