RBI has released a discussion paper on extending credit to large borrowers

Q.  RBI releases discussion paper on enhancing credit supply to _______ borrowers.
- Published on 13 May 16

a. Medium
b. Small
c. Large
d. None of the above

ANSWER: Large
 
RBI released a discussion paper on the framework for enhancing credit supply to large borrowers which will mitigate risks for banks lending to a unitary corporate.
  • Guidelines will ideally reduce the risk for the banking sector from exposure to highly leveraged accounts
  • This will encourage alternative funding for the corporates

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