Question

What is the primary conceptual distinction between Diversion of Funds and Siphoning of Funds as categorized by RBI guidelines?

A Diversion involves criminal intent to defraud, whereas Siphoning is always a minor accounting error.
B Diversion involves deploying funds for non-sanctioned business/operational activities, whereas Siphoning involves permanently extracting funds from the business for unauthorized personal or non-business gains.
C Diversion applies exclusively to individual borrowers, while Siphoning applies only to public sector banks.
D Diversion is monitored by CERSAI, whereas Siphoning is governed by SEBI.
E Diversion requires immediate SARFAESI action, while Siphoning cannot be prosecuted under law.
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