The correct answer is: All of the above.
The Capital Adequacy Norms declared in the year, 1996, are applicable to all banks, including foreign banks, cooperative banks, private sector banks, and nationalized banks. These norms were introduced by the Reserve Bank of India (RBI) in order to strengthen the capital base of banks and to improve their risk management practices. The norms require banks to maintain a certain level of capital in relation to their risk-weighted assets. This helps to ensure that banks have sufficient resources to absorb losses in the event of unexpected events.
The Capital Adequacy Norms are based on the Basel Accords, which are international standards for banking regulation. The Basel Accords were first issued in 1988 and have been revised several times since then. The latest version of the Basel Accords, Basel III, was issued in 2010.
The Capital Adequacy Norms are an important part of the RBI’s efforts to ensure the stability of the Indian banking system. The norms help to protect depositors and to promote financial stability.
Here is a brief explanation of each option:
- Foreign banks: Foreign banks are banks that are incorporated in a foreign country and that have branches or subsidiaries in India. The Capital Adequacy Norms are applicable to foreign banks that operate in India.
- Co-operative banks: Co-operative banks are banks that are owned and controlled by their members. The Capital Adequacy Norms are applicable to co-operative banks that are registered with the RBI.
- Private sector banks: Private sector banks are banks that are owned by private individuals or companies. The Capital Adequacy Norms are applicable to private sector banks that are registered with the RBI.
- Nationalized banks: Nationalized banks are banks that are owned by the government of India. The Capital Adequacy Norms are applicable to nationalized banks.