CURRENT AFFAIRS

2021

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

As per the guidelines, the minimum ticket size for the issuance of securitization notes will be of what amount?

A	Rs. 1 crore
B	Rs. 4 crore
C	Rs. 6 crore
D	Rs. 5 crore

Explanation:

Detailed explanation-1: -The minimum ticket size for issuance of securitisation notes shall be Rs. 1 crore.

Detailed explanation-2: -The minimum ticket size for issuance of securitisation notes shall be Rs. 1 crore.

Detailed explanation-3: -The Reserve Bank of India (“RBI”) on 24th September 2021, issued the Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021 (“Master Directions”). These Master Directions repeal the existing RBI guidelines on securitisation of standard assets.

Detailed explanation-4: -The minimum retention requirement is intended to improve the due diligence that is carried out on the securitised portfolio. The minimum retention requirement is in the range of 5% to 10% of the book value of the loan being securitised. Limit on total retained exposures.

Detailed explanation-5: -Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities.

There is 1 question to complete.