Under Basel III, what is the minimum Common Equity Tier 1 (CET1) capital requirement for banks in India?

### Concept & Fact Check This question assesses knowledge of international banking regulations (Basel III norms) regarding capital adequacy requirements. ### Step-by-Step Solution * **Given:** Identifying the minimum CET1 capital requirement under Basel III. * **Fact Check:** According to the global Basel III framework, banks must maintain a minimum Common Equity Tier 1 (CET1) ratio of 4.5% of their risk-weighted assets (RWAs). While the RBI generally mandates slightly stricter overall capital requirements in India, the core global Basel III baseline for CET1 specifically remains 4.5%. * **Conclusion:** The minimum CET1 requirement as per the standard framework is 4.5%. ### Exam Strategy & Shortcut For Basel III tier ratios, memorize the core breakdown: CET1 = 4.5%, Total Tier 1 = 6%, and Total Capital = 8% (global minimums without buffers). ### Common Pitfall Confusing CET1 (4.5%) with Total Tier 1 capital (6%) or the Total Capital Adequacy Ratio (CAR) which is 8% globally (and 9% as per RBI mandate). ### Final Answer Therefore, the correct answer is **4.5%**.