📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    What is the intended purpose of the 5% run-off factor

    enforced by the Reserve Bank of India on digitally accessible retail deposits?
    A To promote digital banking Correct Answer Incorrect Answer
    B To minimize transaction fees Correct Answer Incorrect Answer
    C To manage withdrawal risks in digital banking Correct Answer Incorrect Answer
    D To increase liquidity in rural banks Correct Answer Incorrect Answer
    E To attract more digitally accessible deposits Correct Answer Incorrect Answer

    Solution

    The 5% run-off factor is aimed at managing withdrawal risks, especially from internet and mobile banking, where large, quick withdrawals could affect liquidity.

    Practice Next
    More Beepedia Questions

    Relevant for Exams:

    ask-question