GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In CDR, “R” stands for ____
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Ratio
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Receipt
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Reserve
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Restructuring
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Explanation:
Detailed explanation-1: -The constant default rate (CDR) is the percentage of mortgages within a pool of loans in which the mortgagors (borrowers) have fallen more than 90 days behind in making payments to their lenders.
Detailed explanation-2: -Restructuring is an act in which a lender, for economic or legal reasons relating to the borrower’s financial difficulty, grants concessions to the borrower.
Detailed explanation-3: -Corporate Debt Restructuring was initially introduced by RBI as per the VepaKamesam Committee recommendations. The major objective of setting up a CDR system was to help the corporates to come out of financial problems, caused by internal reasons, such as economic slowdown, which are beyond their control.
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