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RBI

Capital Adequacy Ratio

The ratio of a bank's capital to its risk-weighted assets (RWA), measuring financial strength under Basel III norms. Minimum CAR for Indian banks: 11.5% (including capital conservation buffer). Ensures banks can absorb losses.

Last updated: 17 May 2026

Frequently Asked Questions

What is Capital Adequacy Ratio?

The ratio of a bank's capital to its risk-weighted assets (RWA), measuring financial strength under Basel III norms. Minimum CAR for Indian banks: 11.5% (including capital conservation buffer). Ensures banks can absorb losses.

What is the significance of Capital Adequacy Ratio under RBI?

Capital Adequacy Ratio is significant under RBI because The ratio of a bank's capital to its risk-weighted assets (RWA), measuring financial strength under Basel III norms. Minimum CAR for Indian banks: 11.5% (including capital conservation buffer). Ensures banks can absorb losses.

Who does Capital Adequacy Ratio apply to?

Capital Adequacy Ratio under RBI applies to companies, professionals, and individuals involved in RBI-related compliance and regulatory matters in India. Specifically: The ratio of a bank's capital to its risk-weighted assets (RWA), measuring financial strength under Basel III norms. Minimum CAR for Indian banks: 11....

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