What does it mean bank's own money? As we have seen banks are not allowed to have its own assets on the contrary banks have hardly assurance of 5 lakhs against depositors money. Yes bank, PMC banks are there as example being unsafe in their businesses. Something is not right or banking itself is volatile and undergoes frequent irregular changes.
Bank's own money or Bank's capital means the money invested by shareholders plus reserves & surplus of the bank. The minimum capital adequacy requirement prescribed by RBI for Indian banks is 1% more than the minimum capital adequacy norms of Basel-III Accord prescribed to set international standards.... and that is one of the important measures taken towards safeguarding the depositors' interests....
What does it mean bank's own money? As we have seen banks are not allowed to have its own assets on the contrary banks have hardly assurance of 5 lakhs against depositors money. Yes bank, PMC banks are there as example being unsafe in their businesses. Something is not right or banking itself is volatile and undergoes frequent irregular changes.
Bank's own money or Bank's capital means the money invested by shareholders plus reserves & surplus of the bank. The minimum capital adequacy requirement prescribed by RBI for Indian banks is 1% more than the minimum capital adequacy norms of Basel-III Accord prescribed to set international standards.... and that is one of the important measures taken towards safeguarding the depositors' interests....