Banking & Finance MCQs

RBI's frameworks for stressed asset resolution are generally comprehensive, covering all regulated entities under its purview, including banks, NBFCs, and other financial institutions, to ensure a consistent and effective approach across the financial sector.

The new framework emphasizes early identification and resolution of stressed assets, often by mandating specific timelines for resolution plans and requiring referral to the National Company Law Tribunal (NCLT) under the IBC if a resolution is not achieved within the stipulated period.

Enhanced prudential norms for NBFCs are comprehensive, aiming to improve capital adequacy, asset quality, risk management, corporate governance, and transparency to ensure a robust and stable financial sector.

RBI classifies NBFCs based on whether they accept public deposits (Deposit-taking vs. Non-deposit taking) and their asset size/systemic importance (Systemically Important vs. Non-Systemically Important). 'Public Sector' refers to ownership, not a regulatory classification category for NBFCs by RBI.

The primary objective of RBI enhancing prudential norms for NBFCs is to strengthen financial stability, mitigate risks, and protect the interests of depositors and the broader financial system.

One of the primary objectives of the RBI's monetary policy is to maintain price stability, which involves managing inflation. Keeping the repo rate steady or increasing it can help control inflation.

The repo rate is the interest rate at which the central bank (RBI) provides liquidity to commercial banks in exchange for government securities, playing a crucial role in monetary policy.

When inflationary trends are present, central banks often maintain or increase policy rates like the repo rate to curb demand and control inflation, aiming for price stability.

सुरक्षा को मजबूत करके, RBI का लक्ष्य डिजिटल भुगतानों में विश्वास और भरोसा पैदा करना है, जिससे वित्तीय प्रणाली की समग्र स्थिरता और अखंडता सुनिश्चित हो सके क्योंकि यह तेजी से डिजिटल हो रही है।

Enhanced security frameworks often include measures like multi-factor authentication (MFA) for stronger verification and advanced fraud detection and monitoring systems to prevent unauthorized transactions.