BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

For availment of refinance from National Housing Bank, scheduled commercial bank has to satisfy which of the following conditions?

A	The capital adequacy ratio of the banks should be as per the norms prescribed by the Reserve Bank of India
B	The net non-performing assets to the net advances of the bank should not exceed 10%
C	The scheduled commercial bank has earned profit for the last 2 years
D	All of the above

Explanation:

Detailed explanation-1: -HFCs fulfilling the following criteria will be eligible to draw refinance from NHB: ▪ The HFC should be registered with NHB/RBI to carry out housing finance activity in the country. The HFC should provide long-term finance for construction / purchase / repair/ upgradation of dwelling units by home-seekers.

Detailed explanation-2: -The National Housing Bank (NHB) offers refinance assistance to Housing Finance Companies (HFCs) in respect of their loans given to individuals for housing.

Detailed explanation-3: -The Reserve Bank of India (RBI) set up the Agricultural Refinance Corporation (ARC) in 1963 to work as a refinancing agency in providing medium-term and long-term agricultural credit to support investment credit needs for agricultural development.

There is 1 question to complete.