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    Question

    What is the intended purpose of the 5% run-off factor

    enforced by the Reserve Bank of India on digitally accessible retail deposits?
    A To promote digital banking Correct Answer Incorrect Answer
    B To minimize transaction fees Correct Answer Incorrect Answer
    C To manage withdrawal risks in digital banking Correct Answer Incorrect Answer
    D To increase liquidity in rural banks Correct Answer Incorrect Answer
    E To attract more digitally accessible deposits Correct Answer Incorrect Answer

    Solution

    The 5% run-off factor is aimed at managing withdrawal risks, especially from internet and mobile banking, where large, quick withdrawals could affect liquidity.

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