2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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40%
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25%
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15%
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23%
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Detailed explanation-1: -2.2 UCBs shall have at least 50 per cent of their aggregate loans and advances comprising loans of not more than ₹25 lakh or 0.2% of their tier I capital, whichever is higher, subject to a maximum of Rs. 1 crore, per borrower/party.
Detailed explanation-2: -1 The exposure of UCBs to housing, real estate and commercial real estate loans would be limited to 10 per cent of their total assets.
Detailed explanation-3: -According to the master circular issued on June 23, the RBI has reduced the exposure limits of UCBs to a group of connected borrowers by 15 per cent from the previous limit of 40 per cent to 25 per cent. The loan exposure limit for a single borrower for UCBs remain unchanged at 15 per cent, though.
Detailed explanation-4: -Group exposure limit determines the maximum amount a bank can lend to one business house. This is done to prevent the troubles at entity having a spillover effect on the bank which could lead to a systemic risk.