Q. What is the minimum capital proposed by the RBI for four all India financial institutions (AIFI)?
Answer:
11.50 %
Notes: The Reserve Bank of India has proposed minimum 11.5% capital for the four all India financial institutions (AIFI). Minimum total capital is proposed at 9% along with minimum capital buffer at 2.5%.
This proposal has been made in line with Basel III framework to raise their financial strength in periods of stress. The new capital norms would be applicable to Exim Bank, NABARD, NHB and SIDBI from the next fiscal year.