The Reserve Bank of India (RBI) has issued guidelines for Regional Rural Banks (RRBs) under the “Master Direction of Prudential Norms on Capital Adequacy.” According to these guidelines, RRBs are required to maintain a minimum ratio of 9% for Capital to Risk-Weighted Assets (CRAR) on an ongoing basis. This means that the capital held by the banks should be at least 9% of the total risk-weighted assets, ensuring they have sufficient financial strength to absorb potential losses.
RBI Guidelines: Regional Rural Banks Must Maintain 9% Capital Adequacy Ratio
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