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    Question

    As per the proposed changed in the ECB Framework, the

    outstanding ECB limit is to be _______
    A higher of USD 750 million or 3x of net worth Correct Answer Incorrect Answer
    B higher of USD 1 billion or 3x of net worth Correct Answer Incorrect Answer
    C higher of USD 750 million or 2x of net worth Correct Answer Incorrect Answer
    D higher of USD 1 billion or 2x of net worth Correct Answer Incorrect Answer
    E higher of USD 750 million or 1.5 of net worth Correct Answer Incorrect Answer

    Solution

    RBI proposes to enhance the Limit on ECB - Absolute Limit on outstanding ECBs increased to higher of USD 1 billion or 3x of net worth (3x limit includes domestic borrowings) from the present limits of USD 750 mn per FY.  Financial sector entities not subject to the cap.  Borrowing limits are proposed to be linked to a borrower’s financial strength. 

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