- Wealth PMS
We've been asking for it for ages. And now, RBI's done it: Allowed banks to access their large amount of real estate properties to use as capital. In a note today the RBI has said:
• Banks can use their "revaluation reserves" as part of Common Equity Tier 1 (CET1) Capital, with a discount of 55%. (subject to certain conditions)
• Banks can also use the "foreign currency translation reserve" (FCTR) as CET1 capital with a discount of 25%.