Entrance Exams
Govt. Exams
PMMY aims to provide collateral-free loans to micro and small enterprises for business purposes, with loans up to Rs. 10 lakh under the scheme.
Basel III requires a minimum CET1 capital ratio of 4.5%, with an additional capital conservation buffer of 2.5%, bringing the total to 7%.
Repo (Repurchase Agreement) is a short-term borrowing mechanism where securities are sold with an agreement to repurchase them at a higher price on a specified date.
Section 24 of the RBI Act, 1934 mandates that banks maintain a minimum SLR of not less than 18% of their net demand and time liabilities (NDTL).
The RBI Governor is appointed for a tenure of 4 years, after which reappointment is possible. The current Governor is Sanjay Malhotra (appointed December 2023).
Securitization is the process of converting illiquid assets (like loans) into tradable securities that are backed by the underlying cash flows of those assets.
CRR requires banks to maintain a certain percentage of their demand and time liabilities as cash reserves with the RBI, currently at 4.5% (as of 2024).
RBI guidelines specify Rs. 10 lakh limit for agriculture sector and Rs. 1 crore for micro-enterprises under Priority Sector Lending (as of 2024).
SLF is a standing facility introduced by RBI allowing scheduled banks to borrow funds against government securities, providing liquidity at a specified spread over the policy rate.
The Basel Committee on Banking Supervision sets international standards for bank regulation and capital adequacy through Basel I, II, and III frameworks.