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Which of the following factor is considered as the violation of the RBI guidelines? 
  • a)
    Altering Repo and Reverse Repo rates
  • b)
    Arbitrary adjustment of spreads
  • c)
    Inflating of base rate
  • d)
    1&2
  • e)
    2 &3
Correct answer is option 'E'. Can you explain this answer?
Verified Answer
Which of the following factor is considered as the violation of the RB...
Answer – 5. 2 &3
Explanation

Reserve Bank of India (RBI) panel on an external benchmark rate for banks headed by Janak Raj, Principal adviser of Monetary Policy Department has submitted its report. As per the report, several disconcerting banking practices, including violation of the RBI guidelines, inflating of base rate and arbitrary adjustment of spreads are prevalent among major banks in India.
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Which of the following factor is considered as the violation of the RBI guidelines?a)Altering Repo and Reverse Repo ratesb)Arbitrary adjustment of spreadsc)Inflating of base rated)1&2e)2 &3Correct answer is option 'E'. Can you explain this answer?
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