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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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