Question

Under the guidelines of the Reserve Bank of India (RB

  • F for a corporate client, how is the borrower's mandatory margin contribution mathematically calculated? 
  • I , if a commercial bank chooses to utilize the Tandon Committee's "Second Method" of lending to calculate the Maximum Permissible Bank Finance (MPB
A 25% of the annual projected turnover
B 25% of the calculated Working Capital Gap (WCG)
C 5% of the total current liabilities
D 25% of the total Current Assets (CA)
E 20% of the Core Current Assets (CCA)
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