BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

According to the RBI data, what amount of bad loans banks has recovered in the fiscal ended March 2018?

A	Rs 40, 400 crore
B	Rs 37, 500 crore
C	Rs 33, 300 crore
D	Rs 42, 500 crore

Explanation:

Detailed explanation-1: -Repo Rate (RR) is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks or financial institutions in India against government securities. The current Repo Rate 2022 is at 4.40%.

Detailed explanation-2: -Current reverse repo rate is at 3.35%. Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central Bank of our country i.e. Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures.

Detailed explanation-3: -Detailed Solution. The Correct Answer is Option 1 i.e Bank rate. The rate charged by the central bank for lending funds to commercial banks.

Detailed explanation-4: -The net non-performing assets (NNPA) ratio fell to 1.7% in March 2022. Macro-stress tests for credit risk reveal that scheduled commercial banks (SCBs) are well-capitalised and all banks would be able to comply with the minimum capital requirements even under adverse stress scenarios, it added.

There is 1 question to complete.