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    Question

    Under the RBI’s guidelines, what is the maximum exposure to an individual borrower for UCBs with Tier 1 capital?

    A 10% of Tier 1 capital Correct Answer Incorrect Answer
    B 15% of Tier 1 capital Correct Answer Incorrect Answer
    C 20% of Tier 1 capital Correct Answer Incorrect Answer
    D 25% of Tier 1 capital Correct Answer Incorrect Answer
    E 30% of Tier 1 capital Correct Answer Incorrect Answer

    Solution

    As per the "Master Circular on Exposure Norms," the exposure to an individual borrower must not exceed 15% of Tier 1 capital.

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