New Click here to Enroll in NaBFID Analyst Intro Class on May 6

    Question

    What was one of the major benefits of the Automatic

    Sweep In Sweep Out (ASISO) facility introduced by the RBI in 2020?
    A Increased demand for cash reserves Correct Answer Incorrect Answer
    B Decreased reliance on intraday liquidity flows Correct Answer Incorrect Answer
    C Reduced volatility in daily reserve maintenance Correct Answer Incorrect Answer
    D Limiting banks’ flexibility in reserve management Correct Answer Incorrect Answer
    E Increased systemic volatility in reserve allocation Correct Answer Incorrect Answer

    Solution

    The ASISO facility enabled banks to better manage cash reserve ratios, reducing volatility in daily reserve requirements while optimizing liquidity.

    Practice Next