Question

A bank’s exposure to gold loans as a portfolio has increased sharply in one region. RBI inspection flags concentration risk in this segment. The credit committee reviews regulatory intent behind gold loan caps. What is the primary regulatory objective?

A Control interest rates
B Improve profitability
C Control concentration and asset quality risk
D Promote retail lending
E Encourage priority sector
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RBI Grade B 2026 Phase 1 Memory Based Paper
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