Skip to main content
RBI

Tier 2 Capital

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%.

Last updated: 17 May 2026

Frequently Asked Questions

What is Tier 2 Capital?

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%.

What is the significance of Tier 2 Capital under RBI?

Tier 2 Capital is significant under RBI because it refers to: 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%.

Who does Tier 2 Capital apply to?

Tier 2 Capital under RBI applies to companies, professionals, and individuals involved in RBI-related compliance and regulatory matters in India. Specifically: Supplementary capital of a bank under Basel III including subordinated debt, revaluation reserves, and general provisions. Less permanent than Tier 1 ...

Related Updates

Related Searches

Tier 2 capital meaningTier 2 capital Basel IIIsubordinated debt banking IndiaTier 1 vs Tier 2 capital