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    • Question

      As per RBI, what is the maximum exposure limit of a bank

      to a single borrower in terms of capital funds?
      A 20% of Tier I Capital Correct Answer Incorrect Answer
      B 15% of Tier I Capital Correct Answer Incorrect Answer
      C 10% of Total Advances Correct Answer Incorrect Answer
      D 25% of Risk Weighted Assets Correct Answer Incorrect Answer
      E 40% of Tier II Capital Correct Answer Incorrect Answer

      Solution

      RBI restricts exposure to a single borrower to 15% of the bank’s Tier I capital. This is part of prudential exposure norms to manage credit concentration risk.

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