Question

Section 21(2) of the Banking Regulation Act, 1949 empowers the Reserve Bank to give specific directions to banking companies regarding advances policy. Which of the following is NOT one of the five matters expressly listed in Section 21(2) on which directions may be given?

A The minimum credit rating that a borrower must possess before a banking company may lend to it
B The margins to be maintained in respect of secured advances
C The maximum amount of advances to any one company, firm, association of persons or individual
D The maximum amount up to which guarantees may be given by a banking company on behalf of any one entity
E The rate of interest and other terms and conditions on which advances or guarantees may be given
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