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    Question

    What does MRR stand

    for?
    A Minimum Retention Requirement Correct Answer Incorrect Answer
    B Maximum Recurring Requirement Correct Answer Incorrect Answer
    C Monthly Recurring Revenue Correct Answer Incorrect Answer
    D Monthly Recurring Ratio Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Minimum Retention Requirement (MRR) is used in the context of securitization. The originator of the loan has to retain a minimum part of the securitized loan, as per RBI Guidelines. This is done to ensure originators retain a stake in the performance of securitized assets, incentivizing due diligence.

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