Which of the following is restricted fund of RBI ?
A) Interest of debt B) Lending to bank
C) Bank not issue D) Credit control
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Which of the following is restricted fund of RBI ?
B) Lending to bank
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The correct option is, (B) Lending to bank.
What are the restrictions on RBI?
(i) It is not to compete with the commercial banks.
(ii) It is not allowed to pay interest on its deposits.
(iii) It cannot engage directly or indirectly in trade.
(iv) It cannot acquire or advice loans against immovable property.
What is RBI guidelines for banks?
The extant RBI guidelines on the subject are as under :
- Banks are required to issue travellers cheques, demand drafts, mail transfers, and telegraphic transfers for Rs. 50,000 and above only by debit to customers' accounts or against cheques and not against cash (Circular DBOD).
Which of the following is not a fund based activity of the bank?
- Therefore, Issuance of Letters of Credit is not the fund based business of commercial banks.
Which of the following is fund based services of banks?
- The fund based finance in banks is in different forms.
- The facilities like Overdrafts,Cash Credit A/c, Bills Finance, Demand Loans, Term Loans etc, wherein immediate flow of funds available to borrowers, are called funds based facility.
Hence, Lending to bank is restricted fund of RBI.
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