Question

    What is the new limit on the ceiling for public deposits

    for HFCs as per the revised RBI guidelines?
    A 2 times of net owned funds Correct Answer Incorrect Answer
    B 3 times of net owned funds Correct Answer Incorrect Answer
    C 1.5 times of net owned funds Correct Answer Incorrect Answer
    D 4 times of net owned funds Correct Answer Incorrect Answer
    E No limit specified Correct Answer Incorrect Answer

    Solution

    The ceiling on public deposits for HFCs has been reduced from 3 times to 1.5 times of net owned funds, according to the revised RBI guidelines. This measure aims to reduce excessive leveraging by HFCs.

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