In brief the important weights for the purpose of Ascertainment of CAR are as follows:- Sr. Risk Item of asset No. Weight % 1. Cash, balances with RBI 0 2. Balances in current account with other banks 20 3 Investments in Government Securities 0 4. Other Investments 100 5. Loans & Advances guaranteed by Government 0 6. Other Loans & Advances 100 7 Bank Premises, Furniture & Fittings etc. 100 8. All Off-Balance Sheet Items like LC's, LG's, Bills accepted. 100 9. Non funded exposure to Real estate 150 135 For detailed Risk Weights as per RBI guidelines for the purpose of CAR given in Annexure IV 3.7 Reporting for Capital Adequacy Norms Banks should furnish an annual return. The format for the returns is specified by the RBI under Capital Adequacy Norms. The retums should be signed by two officials who are authorised to sign the statutory returns now being submitted to the Reserve Bank. Illustration 1 A commercial bank has the following capital funds and assets. Segregate the capital funds into Tier I and Tier II capitals. Find out the risk-adjusted asset and risk weighted assets ratio- (Figures in lakhs) 4.80,00 2,80,00 12,10 Capital Funds: Equity Share Capital Statutory Reserve Capital Reserve (of which 280 lakhs were due to revaluation of assets and the balance due to sale) Assets: Cash Balance with RBI Balances with other Bank Claims on Banks Other Investments Loans and Advances: () Guaranteed by govemment (i) Guaranteed by public sector undertakings of Government of India (ili) Others Premises, furniture and fixtures Other Assets Off-Balance Sheet Items: Acceptances, endorsements and letters of credit 4.80 12.50 28,50 782,50 128,20 702.10 52,02,50 182,00 201,20 37,02,50