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Premium: The RBI Gives Banks At Least 13,000 Crores By Allowing Them To Use Their Property Holdings

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%.

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