CURRENT AFFAIRS

Detailed explanation-1: -Reserve Bank of India (RBI) has raised the banks’ maximum aggregate retail exposure limit to entities with turnover up to Rs 50 crore to Rs 7.5 crore.

Detailed explanation-2: -Aggregate Exposure means, with respect to any Lender at any time, an amount equal to (a) until the Closing Date, the aggregate amount of such Lender’s Commitments at such time and (b) thereafter, the aggregate then outstanding principal amount of such Lender’s Term Loans.

Detailed explanation-3: -’Low value of individual exposures’ is one of the four qualifying criteria which prescribed that the maximum aggregated retail exposure to one counterparty shall not exceed the absolute threshold limit of ₹ 5 crore. 3.

Detailed explanation-4: -Credit exposure is a measurement of the maximum potential loss to a lender if the borrower defaults on payment. It is a calculated risk to doing business as a bank.

Detailed explanation-5: -2.1. 1.1 The exposure ceiling limits would be 15 percent of capital funds in case of a single borrower and 40 percent of capital funds in the case of a borrower group.