The Reserve Bank of India (RBI) has revised investment norms for commercial banks, making it more rigid as it created a new category namely – fair value through profit and loss (FVTPL). Consider the following statements with respect to the information provided-
I. From April 1, 2024, banks will classify their entire investment portfolio (except investments in their own subsidiaries, joint ventures and associates) under three categories - held to maturity , available for sale , and fair value through profit and loss .
II. Sale of investments from the HTM category in any financial year should not exceed 10 percent of the opening carrying value of the HTM portfolio.
III.The banks should create an investment fluctuation reserve (IFR) until the amount of IFR is at least 2 per cent of the AFS and FVTPL (including HFT) portfolio, on a continuing basis.
Which of the following statements is/are incorrect?
The Reserve Bank of India (RBI) has revised investment norms for commercial banks, making it more stringent as it created a new category namely – fair value through profit and loss (FVTPL). The held for trading (HFT) will now be a separate investment subcategory within FVTPL. From April 1, 2024, when these new norms come into effect, banks will classify their entire investment portfolio (except investments in their own subsidiaries, joint ventures and associates) under three categories - held to maturity (HTM), available for sale (AFS), and fair value through profit and loss (FVTPL). Importantly, sale of investments from the HTM category in any financial year should not exceed 5 per cent of the opening carrying value of the HTM portfolio. Any sale beyond this threshold will require the RBI’s approval. The banks should create an investment fluctuation reserve (IFR) until the amount of IFR is at least 2 per cent of the AFS and FVTPL (including HFT) portfolio, on a continuing basis, by transferring to the IFR an amount not less than the lower of the net profit on sale of investments during the year or net profit for the year, less mandatory appropriations. IFR will be eligible for inclusion in Tier II capital to address the systemic impact of sharp increase in yields in government securities.
How many such pairs of letters are there in the word ‘DISPLACED’ each of which has as many letters between them in the word (in both forwar...
How many such pairs of letter are there in the word INGREDIENTS, each of which has as many letters between them in the word as in the English alphabet?
A farmer has some hen and some cows. Find out the total number of hen if the total number of heads is 50 and the total number of feet is 160?
In a row of letters, a letter is 7th from left end and 15th from the right end. How many letters are there in a row?
Select the correct combination of mathematical signs to replace * signs and to balance the given equation.
5 * 5 * 5 * 3 * 10
If the position of the letters in the word “FORMALITIES” are rearranged in such a way that the position of S remains the same position, then...
Given below are four combinations [i], [ii], [iii] and [iv] of five words. In each combination you have to arrange the letters in English alphabetical o...
If all the letters of the word ‘SKETCHING’ are arranged in the alphabetical order starting from the left end then how many consonants appear at the ...
In the word ‘BAREFOOT’ all consonants are written as their preceding letter and all vowels are written as their following letters. Now all letters a...
The position of how many alphabets will remain unchanged if each of the alphabets in the word ‘DECREASE’ is arranged in alphabetical order from left...