The Reserve Bank of India’s Master Direction on Prudential Norms on Capital Adequacy for Regional Rural Banks (RRBs), effective from April 1, 2025, mandates RRBs to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9%, detailing the composition and limits of Tier 1 and Tier 2 capital. It also outlines the methodology for computing risk-weighted assets and stipulates annual reporting requirements to ensure financial stability and compliance.

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