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    Question

    Under consortium lending, the key principle

    is:
    A Only one bank handles all operations Correct Answer Incorrect Answer
    B Lead bank alone gives the loan Correct Answer Incorrect Answer
    C Multiple banks lend to a single borrower jointly Correct Answer Incorrect Answer
    D Loans are given only to public sector units Correct Answer Incorrect Answer
    E RBI handles repayment Correct Answer Incorrect Answer

    Solution

    In consortium lending, several banks jointly finance a large borrower to reduce exposure risk.

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