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Which of the following are the measures announced by Reserve Bank of India to support the nation’s fight against the second wave of COVID-19 infections?
1. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending
2. Scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.
3. Rationalization of KYC norms for enhanced customer experience.
4. Banks can now use 100% of floating provisions held by them, as on December 31, 2020.
Select the correct answer using the code given below:
  • a)
    1, 2 and 3 only
  • b)
    2, 3 and 4 only
  • c)
    1, 2 and 4 only
  • d)
    1, 2, 3 and 4
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following are the measures announced by Reserve Bank of I...
The RBI Governor Shaktikanta Das announced a series of measures to support the nation’s fight against the second wave of COVID-19 infections.
  • Term Liquidity Facility of Rs. 50,000 crore with tenure of up to 3 years, at repo rate, to ease access to emergency health services, for ramping up COVID-related health infrastructure & services.
  • Special Long Term Repo Operations for Small Finance Banks: In order to provide further support to micro, small and other unorganized sector entities, 3-year repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower; facility is available up to 31 October, 2021.
  • Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending: In view of fresh challenges, SFBs are now permitted to regard fresh on-lending to MFIs with asset size up to Rs. 500 crore, as priority sector lending. This facility will be available up to 31 March, 2022.
  • Credit flow to MSME Entrepreneurs: To further incentivize inclusion of unbanked MSMEs into banking system, exemption provided in February, 2021 wherein scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.
  • Rationalization of KYC norms for enhanced customer experience: Steps being proposed include –
    • Extending scope to video KYC for new customer categories such as proprietorship firms,
    • Conversion of limited KYC accounts to fully KYC compliant accounts,
    • Introduction of more customer-friendly options in KYC updating and
    • enabling the use of KYC Identifier of Centralised KYC Registry (CKYCR) for V-CIP and submission of electronic documents as identify proof
  • Floating Provisions and Countercyclical Provisioning Buffer: Banks can now use 100% of floating provisions held by them, as on December 31, 2020, for making specific provisions for NPAs; such utilization is permitted up to March 31, 2022.
  • Relaxation of overdraft facility for states: Maximum number of days of overdraft in a quarter for state governments has been increased from 36 to 50 days. The number of consecutive days of OD has been increased from 14 to 21 days; facility available up to September 30, 2021.
Hence, option (d) is the correct answer.
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Community Answer
Which of the following are the measures announced by Reserve Bank of I...
D
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Which of the following are the measures announced by Reserve Bank of India to support the nation’s fight against the second wave of COVID-19 infections?1. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending2. Scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.3. Rationalization of KYC norms for enhanced customer experience.4. Banks can now use 100% of floating provisions held by them, as on December 31, 2020.Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1, 2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'D'. Can you explain this answer?
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Which of the following are the measures announced by Reserve Bank of India to support the nation’s fight against the second wave of COVID-19 infections?1. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending2. Scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.3. Rationalization of KYC norms for enhanced customer experience.4. Banks can now use 100% of floating provisions held by them, as on December 31, 2020.Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1, 2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following are the measures announced by Reserve Bank of India to support the nation’s fight against the second wave of COVID-19 infections?1. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending2. Scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.3. Rationalization of KYC norms for enhanced customer experience.4. Banks can now use 100% of floating provisions held by them, as on December 31, 2020.Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1, 2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following are the measures announced by Reserve Bank of India to support the nation’s fight against the second wave of COVID-19 infections?1. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending2. Scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.3. Rationalization of KYC norms for enhanced customer experience.4. Banks can now use 100% of floating provisions held by them, as on December 31, 2020.Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1, 2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'D'. Can you explain this answer?.
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