BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To reduce liquidity in the market
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It is as per Basel II requirements.
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It is as per Bank for International Settlement (BIS) directives.
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It is to protect NBFCs from any impact of possible economic slowdown.
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Detailed explanation-1: -RBI rationalises prudential norms for NBFCs As such, a loan asset would become NPA if the instalment or interest thereon remains overdue for six months and a lease or hire purchase asset would become NPA if the lease rentals or hire purchase instalment remains overdue for twelve months.
Detailed explanation-2: -It acts as the banker and financial advisor to government . It supervises the functioning of formal sources of loans. It promotes financial inclusion by ensuring that banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, and small borrowers.
Detailed explanation-3: -As per the extant regulations, every NBFC is required to maintain a minimum capital ratio of 15 per cent of its aggregate risk-weighted assets (including both on and off-balance sheet items). To further strengthen their capital position, the PCA framework for NBFCs will be made effective from October 1, 2022.
Detailed explanation-4: -Systemically Important Core Investment Company (CIC-ND-SI): CIC-ND-SI is an NBFC carrying on the business of acquisition of shares and securities.