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    Question

    According to the Deposit Insurance and Credit Guarantee

    Corporation Act what does the term "credit facility" encompass?
    A Financial assistance provided only by government institutions Correct Answer Incorrect Answer
    B Financial assistance granted by credit institutions outside of India Correct Answer Incorrect Answer
    C Any form of financial assistance granted by a credit institution in India Correct Answer Incorrect Answer
    D Only term or installment credits provided by credit institutions Correct Answer Incorrect Answer
    E Only performance guarantees issued by credit institutions Correct Answer Incorrect Answer

    Solution

    Section 21A Guaranteeing of credit facilities and indemnifying credit institutions: Explanation - “Credit facility” means any financial assistance, including a loan or advance, cash credit, overdraft, bills purchased or discounted, a term or instalment credit and any guarantee other than a performance guarantee, granted or issued in India by a credit institution at any of its offices in India.

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