RBI Relaxes Capital Norms: Quarterly Profits Now Inclusion-Ready for CET1 Calculations
The previous restriction linked to 'incremental NPA provision variability' has been eliminated to simplify capital adequacy reporting for financial institutions.
To qualify, banks must ensure their quarterly financial results are either fully audited or have undergone a limited review by statutory auditors.
Local Area Banks (LABs) and Regional Rural Banks (RRBs) are specifically excluded from this regulatory relaxation.
This move is designed to enhance the real-time capital position of banks, reflecting their core strength (Tier 1 capital) more accurately throughout the financial year.
Key Facts / Static GK
CET1 Capital: The highest quality of bank capital, primarily consisting of common shares and retained earnings.
Basel III: International regulatory framework for banks.
Practice Quiz — 15 May 2026
Q1. Regarding the RBI's recent relaxation of CET1 capital norms, consider the following statements: I. Banks can include quarterly profits in CET1 capital without any audit requirements. II. The relaxation applies to Payments Banks and Small Finance Banks. III. Regional Rural Banks (RRBs) are included in this new framework.
Q2. What is the targeted volume of coal gasification set by the Government of India to be achieved by the year 2030?
Q3. What is the primary reason for the removal of the CSR obligation for companies participating in the revamped PM Internship Scheme 2026?
Q4. Which of the following conditions allows for an exemption from the sugar export ban effective May 2026? I. Shipments already handed over to customs before the notification. II. Exports of refined sugar to any neighboring country. III. Exports where loading began before 13 May 2026.
Q5. India recently tested the MIRV-enabled Agni missile. Which of the following countries is NOT part of the elite group that already possesses MIRV technology?
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