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RBI

Tier 1 Capital

The core capital of a bank under Basel III, comprising Common Equity Tier 1 (CET1 — equity shares and retained earnings) and Additional Tier 1 (AT1 — perpetual bonds). CET1 must be at least 5.5% of RWA for Indian banks.

Last updated: 17 May 2026

Frequently Asked Questions

What is Tier 1 Capital?

The core capital of a bank under Basel III, comprising Common Equity Tier 1 (CET1 — equity shares and retained earnings) and Additional Tier 1 (AT1 — perpetual bonds). CET1 must be at least 5.5% of RWA for Indian banks.

What is the significance of Tier 1 Capital under RBI?

Tier 1 Capital is significant under RBI because The core capital of a bank under Basel III, comprising Common Equity Tier 1 (CET1 — equity shares and retained earnings) and Additional Tier 1 (AT1 — perpetual bonds). CET1 must be at least 5.5% of RWA for Indian banks.

Who does Tier 1 Capital apply to?

Tier 1 Capital under RBI applies to companies, professionals, and individuals involved in RBI-related compliance and regulatory matters in India. Specifically: The core capital of a bank under Basel III, comprising Common Equity Tier 1 (CET1 — equity shares and retained earnings) and Additional Tier 1 (AT1 — ...

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