3 Indian & AP Economy and Planning · 3.4.2 Banking and financial inclusion

3.4.2.3 Prudential regulation: Basel norms, capital adequacy and deposit insurance (DICGC)

Prudential rules make banks hold enough capital and liquid assets to absorb losses, and DICGC insures each depositor up to ₹5 lakh.

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • Basel I II III
  • CRAR
  • CET1
  • capital conservation buffer
  • LCR
  • NSFR
  • D-SIB
  • Prompt Corrective Action
  • DICGC
  • deposit insurance

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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