Question

According to a FICCI-IBA survey, what is one of the key concerns for India’s banking system?

Q: Answer-According to a FICCI-IBA survey, what is one of the key concerns for India&rsquo;s banking system?

The FICCI-IBA survey indicated that liquidity challenges could arise for Indias banking system if credit growth continues to outpace deposit growth. Raising deposits remains a top priority to maintain credit costs at manageable levels.

A Increasing competition from fintech startups

B Liquidity challenges if credit growth outpaces deposit growth

C Excessive reliance on foreign investments

D Rapid digitalization without proper infrastructure

E Declining demand for long-term credit

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