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All of the above are the components of MCLR Negative carry on account of CRR : is the cost that the banks have to incur while keeping reserves with the RBI. The RBI is not giving an interest for CRR held by the banks. Operating cost : is the operating expenses incurred by the banks. Tenor premium : denotes that higher interest can be charged from long term loans Marginal Cost : The marginal cost that is the novel element of the MCLR. The marginal cost of funds will comprise of Marginal cost of borrowings and return on networth.
Provision for bad and doubtful debts is based on the principle of
Where the aggregate exposure of the banking system is ₹5 crore or more, borrowers can open current accounts with any one of the banks with which it ha...
A bank needs liquidity for which of the following?
I. Meeting deposit withdrawals
...