2018
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Partial Credit Enhancement
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Investment-grade corporate bonds
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Mortgage-backed bonds
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Foreign bonds
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Detailed explanation-1: -However, banks are permitted to provide partial credit enhancement (PCE) to bonds issued by NBFC-ND-SIs and Housing Finance Companies (HFCs) as per guidelines contained at para 2.4 of the Master Circular on Guarantees and co-acceptances dated November 09, 2021, as updated from time to time.
Detailed explanation-2: -Government securities in the form of GPN, bearer bond, stock and BLA are issued by RBI, while the Agency Banks are presently eligible to issue Relief/Savings Bonds in the form of BLA only.
Detailed explanation-3: -NBFIs regulated by the Reserve Bank 2 comprise non-banking financial companies (NBFCs), housing finance companies (HFCs), all-India financial institutions (AIFIs), and primary dealers (PDs).
Detailed explanation-4: -Home loans are provided to customers by nationalised Banks and certain Non-Banking Finance Companies (NBFCs) registered as Housing Finance Companies (HFCs).
Detailed explanation-5: -NBFIs are a source of consumer credit (along with licensed banks). Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops.