Question
In case of securitization of standard assets, what is
the Minimum Retention Requirement (MRR) for underlying loans of maturity – 24 months or less; ?Solution
Securitization is the process of converting illiquid assets, like loans, into tradable securities, essentially transforming them into a form that can be bought and sold in the marke t.  In securitization, the Minimum Retention Requirement (MRR) is a key aspect, as defined by the Reserve Bank of India (RBI) in its Master Directions. It mandates that originators of securitized assets retain a certain percentage of the credit risk associated with those assets. This ensures the originator has a continued stake in the performance of the securitized assets and encourages them to carry out proper due diligence.   MRR Requirements (as per RBI guidelines): Â
- For loans with a maturity of 24 months or less, the MRR is 5% of the book value of the loans being securitized.  Â
- For loans with a maturity greater than 24 months , the MRR is 10%. Â
. Every men is the architect of his own fortune.
        II. If you chase two rabbits, you will not catch neither one.
...It was he who came running in the house with the news about the earthquake.
The RBI has judiciously drew up a road-map which should be good for the country.
The people in the courtroom waited for the judge for announce the justice that would be administered to the guilty man.
Identify the segment in the sentence that contains a grammatical error-
He promises, I'll call you as soon as I get home.
Find out the error according to the grammar and context of the given sentences. If there is no error, mark option 5, i.e. No error. (Ignore the punctu...
Hindi cinema, incidentally, played (1)/a big role in keeping people together, (2)/making space for each other’s faith even as (3)/movies brought p...
I used(A)/ a pair of black trousers(B)/ for a week.(C)
Summer is the holiday peak for rural India, but for urban Indians, there’s one peak in August, and then a few similar highs in May, September and ...
Identify the segment in the sentence that contains a grammatical error-
The village head man attempted to tactful pacify the quarrelling families.