Question

Which statement is NOT correct about PSLCs (Priority Sector Lending Certificate)?

(A) PSLC is buy and sale of priority sector loan portfolio

(B) The scheme is not applicable for Local Area Banks and Small Finance Banks

(C) There will be no transfer of underlying risk

(D) PSLC was introduced in April 2016

A Only (C) Correct Answer Incorrect Answer
B Only (B) Correct Answer Incorrect Answer
C Only (B) & (C) Correct Answer Incorrect Answer
D Only (B) & (D) Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

A scheme of PSLCs was introduced in April 2016. The Reserve Bank provided a platform to enable trading in the certificates, through its core banking solution (CBS) portal (e-Kuber). All scheduled commercial banks (including RRBs), urban co-operative banks, small finance banks (when they become operational) and local area banks are eligible to participate in trading.

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