New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Which condition must be met by custodian banks to issue

    IPCs, according to the revised RBI guidelines?
    A Custodian banks must have an agreement providing an inalienable right over client securities. Correct Answer Incorrect Answer
    B All transactions must be pre-funded by the clients. Correct Answer Incorrect Answer
    C Only banks with existing nostro accounts can issue IPCs. Correct Answer Incorrect Answer
    D Banks must have a minimum capital reserve specified by the RBI. Correct Answer Incorrect Answer
    E IPCs can be issued only if the securities involved are equity-based. Correct Answer Incorrect Answer

    Solution

    Custodian banks are allowed to issue IPCs only if they have agreements that give them an inalienable right over client securities for payout, unless the transactions are pre-funded.

    Practice Next

    Relevant for Exams: