New SEBI Grade A IT Stream New Batch Starts on Nov 30. Click Here to Enroll

    Register

    Question

    What new rule will HFCs (Housing Finance Companies) need to follow starting January 2025 regarding public deposits?

    A HFCs must reduce public deposits by 50% annually. Correct Answer Incorrect Answer
    B HFCs must maintain liquid assets of at least 20% of public deposits Correct Answer Incorrect Answer
    C HFCs must have a minimum investment grade credit rating to accept or renew public deposits Correct Answer Incorrect Answer
    D HFCs must obtain approval from the RBI to accept new public deposits Correct Answer Incorrect Answer
    E HFCs must stop accepting public deposits entirely. Correct Answer Incorrect Answer

    Solution

    As per the revised guidelines issued by the RBI, HFCs must have a minimum investment grade credit rating to accept or renew public deposits starting January 2025. This ensures that only financially sound HFCs can handle public deposits, thereby reducing risks for depositors.

    Practice Next

    Relevant for Exams: