New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What new rule will HFCs (Housing Finance Companies) need

    to follow starting January 2025 regarding public deposits?
    A HFCs must reduce public deposits by 50% annually. Correct Answer Incorrect Answer
    B HFCs must maintain liquid assets of at least 20% of public deposits Correct Answer Incorrect Answer
    C HFCs must have a minimum investment grade credit rating to accept or renew public deposits Correct Answer Incorrect Answer
    D HFCs must obtain approval from the RBI to accept new public deposits Correct Answer Incorrect Answer
    E HFCs must stop accepting public deposits entirely. Correct Answer Incorrect Answer

    Solution

    As per the revised guidelines issued by the RBI, HFCs must have a minimum investment grade credit rating to accept or renew public deposits starting January 2025. This ensures that only financially sound HFCs can handle public deposits, thereby reducing risks for depositors.

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