Govt in talks with RBI to allow RRBs tap Credit Depository

June 27, 2022
Current Context: The Centre is in discussion with RBI to allow regional rural banks to tap its Central Repository of Information of Large Credit in reducing their non-performing assets.
Govt in talks with RBI to allow RRBs tap Credit Depository
  • As of now banks and financial institutions provide credit information with an aggregate fund-based and non-fund-based exposure of Rs 5 crore to CRILC.
  • Earlier, the RBI had allowed RRBs to refer to CRILC and require notifying such lenders as under ‘banking companies’ under Section 45 (A) (a) of the RBI Act.
  • The main objective of this discussion is that center is looking to restructure RRBs and wanted to improve the health of such lenders.
  • As per the report, the gross NPAs of 43 RRBs have improved from 10.4% in FY20 to 9.4% in FY21.
  • For their betterment, the center is also considering allowing RRBs to invest in perpetual debt instruments issued by other banks.

Question:

Q.1 Consider the following statements regarding the Central Repository of Information of Large Credit (CRILC).
A. It has been constituted a to collect, store, and publish data on all borrowers’ credit exposures
B.The aggregate fund-based and non-fund based have exposure of atleast Rs 5 crore

Select the correct option given below
a. Both A & B
b. Only B
c. Only A
d. None of the above

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