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      Question

      Under the RBIтАЩs 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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