CURRENT AFFAIRS

2021

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

How much amount is set up as the first ‘loss risk-sharing instrument’ by NITI Aayog and the World Bank?

A	$3 Million
B	$30 Million
C	$300 Million
D	$33 Million

Explanation:

Detailed explanation-1: -It will aim to facilitate faster and easier financing of EVs. The ET report further said that initially a $300 million fund will be put in place as a “first loss risk sharing instrument.” The funds will be available to all financial institutions.

Detailed explanation-2: -First Loss Risk means, with respect to any Loan Pool, the product produced by multiplying (x) the applicable First Loss Percentage times (y) the aggregate Net Disbursements on all Loans in such Loan Pool.

Detailed explanation-3: -Niti Aayog and the World Bank are working together to facilitate a program for faster and easier financing of electric vehicles (EV) after high-street banks seemed lukewarm due to a small resale market, higher default probabilities and significant upfront costs.

Detailed explanation-4: -The correct answer is NITI Aayog. NITI Aayog, Rocky Mountain Institute (RMI), and RMI India released a report, titled ‘Banking on Electric Vehicles in India’, on 21 Jan 2022. It outlines the importance of priority-sector recognition for retail lending in the electric mobility ecosystem.

There is 1 question to complete.