Bank Recapitalization — Prelims Strategy

Prelims Strategy

Focus on memorizing specific data points: Basel III capital requirements (9% CRAR, 7% Tier 1, 5.5% CET1), major scheme details (Indradhanush ₹70,000 crore, 2017 package ₹2.11 lakh crore), and timeline of key events (AQR 2015, Indradhanush 2015, EASE 2018).

Understand mechanisms clearly - differentiate between direct equity infusion, recapitalization bonds, and market-based approaches. Practice elimination techniques by understanding what each scheme does NOT include.

Common traps include confusing Indradhanush with private bank schemes, misremembering Basel III percentages, and mixing up EASE with other acronyms. Create memory aids for capital ratios and scheme allocations.

Stay updated on current budget allocations and recent policy announcements.