Statutory Meaning & Definition
Supplementary capital of a bank under Basel III including subordinated debt, revaluation reserves, and general provisions. Less permanent than Tier 1 capital. Together with Tier 1, must meet the total CRAR requirement of 11.5%.
Frequently Asked Questions (FAQs)
What is Tier 2 Capital in Indian corporate law?
Supplementary capital of a bank under Basel III including subordinated debt, revaluation reserves, and general provisions. Less permanent than Tier 1 capital. Together with Tier 1, must meet the total CRAR requirement of 11.5%.
Why is Tier 2 Capital important for compliance?
Tier 2 Capital is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Tier 2 Capital?
Tier 2 Capital is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to RBI:
RBI Domestic Money Transfer Directions 2026: Cash Pay-Out and Pay-In Limits Explained
Published: 11 November 2026
RBI CTS Cheque Book Change from 31 December 2026 Is Fake: No New Cheque Books from 1 January 2027
Published: 8 November 2026
RBI Priority Sector Lending Draft Directions 2026: Five RE-Wise Drafts, Comments Open Till 26 November
Published: 6 November 2026
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