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      Question

      Under RBI’s proposed norms, acquisition finance

      exposure of a bank is capped at what percentage of the eligible capital base?
      A 10% Correct Answer Incorrect Answer
      B 15% Correct Answer Incorrect Answer
      C 20% Correct Answer Incorrect Answer
      D 25% Correct Answer Incorrect Answer
      E 30% Correct Answer Incorrect Answer

      Solution

      Acquisition finance exposure is limited to 20% of the eligible capital base, within the overall 40% CME ceiling.

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