Question
Which of the following statements are not true regarding
the issuance of a Bank Guarantee (BG)? A. All bank guarantees have an expiry period and expiry date. Â B. Banks are required to maintain capital against non-fund-based facilities like Bank Guarantees. Â C. Banks should comply with Ghosh Committee recommendations while issuing bank guarantees. Â D. Banks are not allowed to issue bank guarantees in favor of other banks and financial institutions.Solution
• Statement A – True o All BGs must have an expiry period and expiry date. RBI guidelines state they generally should not exceed 10 years (though banks may allow longer after assessing ALM impact). • Statement B – True o BGs are non-fund-based facilities, but banks must maintain capital adequacy requirements against such exposures. • Statement C – True o Banks must follow Ghosh Committee recommendations, such as issuing BGs in serially numbered security forms and advising beneficiaries to verify their genuineness. • Statement D – False o Banks can issue BGs in favor of other banks/financial institutions, subject to prudential norms. They are not outright prohibited.
National year of millets was observed in which year?
Following are the statements about common feature of drought avoidance in plantsÂ
A. Early stomata closure
B. Efficient root system
<...Which is a low-pressure, high efficiency irrigation system that uses buried drip tubes or drip tape to meet crop water needs.
Markets classified on the basis of nature of transactions
Soil water potential at permanent wilting point is
Meat from goats is called by the nameÂ
Which of the following is not a requirement for organic certification under NPOP?Â
Which among the following is a frost tolerant variety of raya
The ratio of organic carbon to organic matter in soil is
Directorate of Coldwater Fisheries Research Institute is located at: