Question

Which is incorrect about the recent NPA Ordinance by the Central Government?

A RBI is authorised to direct banks to tackle NPA problems by intervening directly Correct Answer Incorrect Answer
B RBI can appoint an oversight committee to tackle NPA problems Correct Answer Incorrect Answer
C RBI’s intervention will increase the fear of vigilance enquiries and second guessing on commercial decisions taken in good faith. Correct Answer Incorrect Answer
D The ordinance is passed because NPAs have increased in Indian banking system Correct Answer Incorrect Answer
E All above are correct Correct Answer Incorrect Answer

Solution

RBI’s stamp on the decision will actually reduce the fear of vigilance enquiries and second guessing on commercial decisions taken in good faith.

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