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      Question

      As per RBI's recent regulatory change, what is the new

      minimum qualifying asset threshold for NBFC-MFIs to maintain on an ongoing basis?
      A 80% Correct Answer Incorrect Answer
      B 70% Correct Answer Incorrect Answer
      C 65% Correct Answer Incorrect Answer
      D 60% Correct Answer Incorrect Answer
      E 75% Correct Answer Incorrect Answer

      Solution

      The Reserve Bank of India (RBI) reduced the qualifying asset threshold for Non-Banking Financial Company - Microfinance Institutions (NBFC-MFIs) from 75% to 60%. This means that at least 60% of the total assets (excluding intangibles) must qualify as microfinance assets. The decision aims to enable greater portfolio diversification and operational flexibility in the sector.

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