In the recent times the RBI and the Securities & Exchange Board of India (SEBI) have taken various steps to control the flow of capital in India economy. Which of the following is/are NOT included in this/these step(s)? [BOM 2008]begin{enumerate}item Guidelines have been issued to restrict unregulated overseas investors through P-notes.item RS. 60, 000 crore out of this fund is being provided to waive the loans on farmers. (3) Borrowers raising external commercial borrowings of over$ 20 million would have to park the proceeds overseas for use as foreign currency expenditure.end{enumerate}

BANKING GENERAL KNOWLEDGE

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

In the recent times the RBI and the Securities & Exchange Board of India (SEBI) have taken various steps to control the flow of capital in India economy. Which of the following is/are NOT included in this/these step(s)? [BOM 2008]

A	Borrowers raising external commercial borrowings of over$ 20 million would have to park the proceeds overseas for use as foreign currency expenditure.
B	Only 1
C	Only 2
D	Only 3
E	Both (1) & (3)

Explanation:

Detailed explanation-1: -Detailed Solution. The correct answer is the Reserve Bank of India. Reserve Bank of India is the apex banking institution of India that regulates the financial sector.

Detailed explanation-2: -Following the recommendations of the Narasimham Committee (1998) and the Reserve Bank’s Internal Working Group to Examine the Development of Call Money Market (1997), steps were initiated to reform the call money market and make it a pure inter-bank market, in a phased manner starting in 1999.

Detailed explanation-3: -The RBI has the power to influence the supply of money by adjusting the deposits, reserves (SLR and CRR) it expects banks to maintain, and interest rates that it charges commercial banks that wish to borrow money. These rates and requirements are changed according to the requirements of the economy.

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