Current context: The Reserve Bank India (RBI) has said on 10th Feb 2020, that the special lending window with Cash Reserve Ratio (CRR) exemption will be open from 14th Feb 2020.
a. 2
b. 4
c. 5
d. 7
- The incremental loans disbursed under this facility will have CRR exemption for the next five years.
- This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments.
- RBI said that the window will open for six months ending 31st of July 2020.
- The Net Demand and Time Liabilities (NDTL) will be calculated as of 31st of January.
- RBI asked banks to report the CRR exemption availed at the end of a fortnight under exemptions/others in the Section 42 return, under the provisions of the master circular on CRR and SLR issued on 1st of July, 2015.
- The RBI at its recently held 6th monetary policy announcement said banks, flushed with liquidity, could lend to these segments without making additional provisions without the requirement of parking additional CRR.
Question:
Q.1 The Reserve Bank India (RBI) has announced that the incremental loans of the banks, disbursed under the special lending window will have CRR exemption for the next ___________ years.a. 2
b. 4
c. 5
d. 7
