Financial Awareness - Risk, Stability & Emerging Finance
Which regulatory body in India is responsible for prescribing Capital Adequacy Ratio norms for banks?
Which regulatory body in India is responsible for prescribing Capital Adequacy Ratio norms for banks?
medium Q7 of 15
Step-by-Step Solution
Step 1: Identify the regulator for banking norms
RBI is the central bank and regulator for banking sector in India.Step 2: Analyze options
SEBI regulates capital markets, IRDAI regulates insurance, Ministry of Finance formulates policy but RBI sets CAR norms.Final Answer:
Reserve Bank of India (RBI) → Option BQuick Check:
Reserve Bank of India (RBI) = correct ✅
Quick Trick: RBI regulates banking capital requirements
Common Mistakes:
- Confusing SEBI or IRDAI as banking regulators
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