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International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies and thereby increasing the ____________ in refinance market ?
  • a)
    Liquidity
  • b)
    Repo Rate
  • c)
    Currency Appreciation
  • d)
    Dollar Depreciation
  • e)
    Reserve
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
International or overseas branches of Indian banks will now be able to...
International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies. Announcement in this regard was made after RBI’s fifth bi-monthly monetary policy review on December 6, 2017. Currently Indian banks are allowed to fund dollar loans but are not allowed to refinance these borrowings abroad. This restriction was placed to avert any risks linked to excess foreign currency exposure. Owing to these restrictions, companies sought refinance only through foreign lenders. Now, with RBI’s permission, Indian banks can also participate in refinancing and can earn a higher return on their funds abroad. From borrowers perspective, this decision will improve the liquidity in refinance market and will thus, marginally reduce the cost of borrowing.
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International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies and thereby increasing the ____________ in refinance market ?a)Liquidityb)Repo Ratec)Currency Appreciationd)Dollar Depreciatione)ReserveCorrect answer is option 'A'. Can you explain this answer?
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International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies and thereby increasing the ____________ in refinance market ?a)Liquidityb)Repo Ratec)Currency Appreciationd)Dollar Depreciatione)ReserveCorrect answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies and thereby increasing the ____________ in refinance market ?a)Liquidityb)Repo Ratec)Currency Appreciationd)Dollar Depreciatione)ReserveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for International or overseas branches of Indian banks will now be able to refinance external commercial borrowings (ECB) of AAA-rated private and public sector companies and thereby increasing the ____________ in refinance market ?a)Liquidityb)Repo Ratec)Currency Appreciationd)Dollar Depreciatione)ReserveCorrect answer is option 'A'. Can you explain this answer?.
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