RBI relaxes norms for banks holding power utilities debt

Q.  RBI has relaxed norms for which category of banks?
- Published on 18 Mar 16

a. Banks part of the cleaning up exercises of power utilities
b. Banks holding debt ridden State Electricity Boards bonds
c. Both a and b
d. Neither a nor b

ANSWER: Both a and b
Reserve Bank has provided relief to banks holding bonds of State Electricity Boards that were debt ridden. Banks have been allowed to keep Ujwal Discom Assurance Yojana scheme bonds under held to maturity category. This will lessen pressure on bond yields and debt market. HTM is part of the debt holdings of the bank not subjected to daily price movement which can be held by banks till maturity.

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