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    • Question

      The Reserve Bank of India (RBI) issued final amendment

      directions revising the regulatory framework relating to Investment Fluctuation Reserve (IFR). With effect from which date has the IFR requirement been discontinued?
      A May 1, 2026 Correct Answer Incorrect Answer
      B May 18, 2026 Correct Answer Incorrect Answer
      C June 1, 2026 Correct Answer Incorrect Answer
      D April 1, 2026 Correct Answer Incorrect Answer
      E May 15, 2026 Correct Answer Incorrect Answer

      Solution

      Under the revised norms, the requirement of Investment Fluctuation Reserve (IFR) has been discontinued with effect from May 18, 2026. The RBI removed the IFR requirement because existing capital and risk management norms already provide adequate protection against investment risks. IFR is a reserve created by banks out of their profits to absorb losses from mark-to-market valuation changes.

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