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      Question

      Why did the RBI defer the rollout of the Liquidity

      Coverage Ratio (LCR) norms by a year?
      A To align Indian banking regulations with international standards Correct Answer Incorrect Answer
      B To prevent a liquidity crisis that could have reduced credit availability Correct Answer Incorrect Answer
      C To encourage banks to invest more in high-risk assets Correct Answer Incorrect Answer
      D To allow public sector banks to merge before implementing new norms Correct Answer Incorrect Answer
      E To introduce a dual-system liquidity framework for private and public banks Correct Answer Incorrect Answer

      Solution

      The RBI deferred the rollout of the Liquidity Coverage Ratio (LCR) norms by a year to prevent a liquidity crisis, ensuring credit availability in the market.

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