BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
RBI, in consultation with the Government, has hiked the FPI investment limit in Central government securities (G-Sec) from 5% of outstanding stock now to 5.5% in FY2019 and____in FY2020.
A
6.00%
B
5.90%
C
5.80%
D
5.70%
Explanation: 

Detailed explanation-1: -Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities.

Detailed explanation-2: -Investment by Foreign Portfolio Investors (FPI) in Debt-Relaxations. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the paragraph 3 of the press release on “Liberalisation of Forex Flows” dated July 06, 2022 regarding relaxations in the regulatory regime under the Medium-Term Framework.

Detailed explanation-3: -The notification further said the aggregate limit of the notional amount of Credit Default Swaps (CDS) sold by foreign portfolio investors (FPIs) shall be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of Rs 2, 22, 623 crore is set out for FY 2022-23.

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