Question:
The Reserve Bank of India (RBI) has recently stepped in to ease NBFC woes. RBI’s move will enable banks to meet the liquidity coverage ratio requirement.
Which of the following statements is/are True regarding this:
1. The RBI has decided to increase the single-borrower exposure limit of banks to 15% of their capital funds.
2. The above provision applies to all type of NBFCs.
3. Liquidity coverage ratio refers to liquid assets that financial institutions need to hold in order to meet long-term obligations.
Choose the correct answer from the codes given below:
A) 1 only
B) 1 and 2 only
C) 1 and 3 only
D) 2 and 3 only
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