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    Question

    What is the present ceiling of bank credit linked to

    the Net Owned Fund (NOF) of an NBFC?
    A There is no limit Correct Answer Incorrect Answer
    B Up to 10 times the NOF Correct Answer Incorrect Answer
    C Up to 12 times the NOF Correct Answer Incorrect Answer
    D Up to 15 times the NOF Correct Answer Incorrect Answer
    E Up to 20 times the NOF Correct Answer Incorrect Answer

    Solution

    The present regulatory framework does not specify a ceiling for bank credit linked to the Net Owned Fund (NOF) of Non-Banking Financial Companies (NBFCs). Banks apply their own risk management and due diligence processes in determining the extent of credit to be extended to NBFCs.

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