BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

Recently, RBI has proposed setting up of a trade Receivables and credit exchange (TCE) for financing?

A	Regional Rural Banks
B	Micro, Small and Medium Enterprises
C	Public Sector Banks
D	Non-banking Financial Corporations

Explanation:

Detailed explanation-1: -In view of the fact that banks are the predominant source of finance in India, the Reserve Bank of India includes micro and small enterprises in the list of priority lending sectors.

Detailed explanation-2: -Boost For MSMEs As C2FO Receives Rbi’s Approval To Operate The TReDS Platform In India. C2FO is the world’s on-demand working capital platform, providing fast, flexible and equitable access to low-cost capital to nearly 2 million businesses worldwide.

Detailed explanation-3: -Eligibility criteria to set up and operate the TReDS (a) Financial Criteria (i) Since the TReDS will not be allowed to assume any credit risk, its minimum paid up equity capital shall be Rs. 25 crore.

Detailed explanation-4: -To decrease the financing concerns faced by MSMEs in India, RBI introduced the concept of TReDS in 2014, an institutional mechanism for financing trade receivables on a secure digital platform.

There is 1 question to complete.