ele ted s 23.11
4. Indirect foreign investment 4. MSF is linked to the net demand and
5. Trade time liabilities of the banks.
Code: Which of the above statements are correct?
(a) 1,3 and 5 (a) 1, 2 and 3
(b) 1, 2, 4 and 5 (b) 2, 3 and 4
(c) 3, 4 and 5 (c) 1, 3 and 4
(d) 1, 2, 3 and 4
(d) 2, 4 and 5
5. RBI recently announced revised norms for
3. Since 2016–17, a new methodology has been
Priority Sector Lending in India. Consider
operationalised by the RBI, for the banks in the following statement in the light of the
India, to decide their lending rates—known announcement.
as the Marginal Cost of funds based Lending
1. Foreign banks’ PSL target has been
Rate (MCLR). The new method aims for increased to 40 per cent at par with
which of the following:select your answer Indian banks irrespective of their
using the code given below: number of branches.
1. to improve transmission of policy rates 2. Food and Agro-processing and
into the lending rates of banks overdrafts up to Rs. 50,000 in no-frill
2. to improve transparency in the accounts have been included in it.
methodology followed by banks for 3. Off-grid solar and other renewable
determining interest rates energy solutions together with
3. to ensure availability of bank loans vocational education are now under
at interest rates which are fair to the the PSL.
borrowers as well as the banks 4. MSE loans up to Rs. 2 crore have also
been added under the PSL lending of
4. to help the banks to become more
competitive and enhance their long
run value Which of the above statements are
(a) 1, 2 and 3
(a) 1 and 3
(b) 2, 3 and 4
(b) 1, 2 and 4 (c) 1, 3 and 4
(c) 1, 3 and 4 (d) 1, 2, 3 and 4
(d) 1, 2, 3 and 4
6. Which of the following segments of money
4. Consider the following statements regarding is considered as the ‘Other’ deposits with
the Marginal Standing Facility (MSF): the RBI?
1. MSF functions as the last resort for 1. Deposits of quasi-government bodies
banks to borrow short-term funds. 2. Other financial institutions and
2. MSF is on the line of the existing LAF primary dealers
and is part of it. 3. Balance in the accounts of foreign
3. Being a penal rate, MSF is a costlier central banks and governments
route than repo. 4. Accounts of international agencies