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QuestionT CorrectAn ype QuestionText AnswerA AnswerB AnswerC AnswerD swers CorrectAnswerText The market The profitability perception of a generated from The proportion of The proportion of The proportion of multiple_c What does the equity ratio indicate about a company's future shareholder assets financed by assets financed by assets financed by hoice company? earnings investments debt shareholder equity D shareholder equity Which ratio would be most useful to assess multiple_c how much investors are willing to pay for a Market Price-to-Earnings Earnings Per Share Price-to-Earnings hoice rupee of earnings? Capitalization (P/E) Ratio (EPS) Dividend Yield B (P/E) Ratio The return on investment from The return on dividends The average investment from relative to the The total market The proportion of earnings available dividends relative multiple_c market price of value of a profits distributed for each share of to the market price hoice What does the dividend yield indicate? the stock company's equity as dividends common stock A of the stock Net Income / Annual Dividends multiple_c Total Assets - Average Share Price x Total per Share / Share Price x Total hoice How is market capitalization calculated? Total Liabilities Outstanding Shares Outstanding Shares Earnings Per Share C Outstanding Shares How effectively a How well a company collects The efficiency of company generates The frequency of How effectively a multiple_c What does the Receivables Turnover Ratio on its asset management profits from its inventory sold and company collects hoice measure? receivables. to produce sales. equity. replaced. A on its receivables. multiple_c Which liquidity ratio excludes inventory hoice from current assets? Cash Flow Ratio Current Ratio Quick Ratio Cash Ratio C Quick Ratio The speed at How easily a The proportion of How easily a which inventory The ability to pay company can pay sales that exceeds company can pay multiple_c What does the Interest Coverage Ratio is converted to short-term interest on the cost of goods interest on hoice assess? sales. liabilities. outstanding debt. sold. C outstanding debt. Percentage of Percentage of Efficiency in revenue exceeding Liquidity without revenue exceeding multiple_c What does the Gross Profit Margin indicate utilizing total Overall profitability the cost of goods considering the cost of goods hoice in financial analysis? assets after all expenses sold current liabilities C sold  Which ratio evaluates how efficiently a multiple_c company generates sales from its total Price to Earnings Asset Turnover Return on Equity Asset Turnover hoice assets? (P/E) Ratio Ratio Net Profit Margin (ROE) B Ratio Investor Investor expectations expectations Efficiency in regarding regarding multiple_c What is the focus of the Price to Earnings Liquidity collecting profitability and Debt financing profitability and hoice (P/E) Ratio? management receivables growth evaluation C growth Which principle of lending primarily multiple_c emphasizes the security of the lender's hoice funds? Profitability Transparency Safety Liquidity C Safety It is treated as It is treated as It is set by penal charges and It can be penal charges and multiple_c What is the rule regarding penal interest borrower cannot be It should be added calculated cannot be hoice charged by banks on loans? agreement. capitalized. to the existing rate. monthly. B capitalized. It must be lower What is the maximum allowable penal than the charges It must be equal to It can be more than It should be It must be equal to charge for loans to individual borrowers for non- the charges for non- the charges for non- double the charges the charges for non- multiple_c compared to non-individual borrowers for individual individual individual for non-individual individual hoice similar non-compliance? borrowers. borrowers. borrowers. borrowers. B borrowers. multiple_c Which countries are involved in the joint China, Brazil, and China, Iran, and Russia, the U.S., India, Iran, and China, Iran, and hoice naval exercise 'Security Belt-2024'? India Russia and Saudi Arabia Turkey B Russia multiple_c Who was appointed as the new prime Mohammad hoice minister of Portugal? Harris O'Sullivan Mahmoud Abbas Luis Montenegro Mustafa C Luis Montenegro Increased Improved multiple_c What is the main reason cited for the consumer manufacturing Rise in food articles Government tax Rise in food articles hoice inflation rate increase? spending output and energy prices reforms C and energy prices multiple_c What stake did Reliance Industries acquire hoice in Adani's power project? 20% 26% 30% 25% B 26% To support To enhance the To promote To enhance the startups in the capabilities of the To increase public financial services capabilities of the multiple_c technology Indian Army and Air awareness about among Indian Indian Army and hoice What is the goal of the IDEX initiative? sector Force renewable energy banks B Air Force  Completed India's largest Completed India's solar and battery Developed a new Opened a new Launched a solar largest solar and multiple_c What was the milestone achieved by Tata energy storage solar panel manufacturing energy awareness battery energy hoice Power Solar Systems Limited? project technology facility campaign A storage project Which institution is involved in the Indian Institute Indian Institute of multiple_c partnership with Tata Power Solar of Technology Indian Institute of Delhi School of National Solar Technology Delhi hoice Systems? Delhi (IIT Delhi) Management Economics Energy Institute A (IIT Delhi) Developing Social Addressing Support for Support for multiple_c What significant project is Startup green entrepreneurship healthcare renewable energy renewable energy hoice Mahakumbh 2024 associated with? technologies training challenges initiatives D initiatives multiple_c What type of energy project does Tata hoice Power Solar Systems Limited focus on? Solar energy Nuclear energy Fossil fuel energy Hydropower A Solar energy multiple_c What is the name of the fuel manufactured hoice by Indian Oil for Formula One racing? Storm petrol RaceFuel SpeedMax TurboFuel A Storm petrol multiple_c In partnership with which bank did Flipkart State Bank of hoice launch its UPI services? India Axis Bank HDFC Bank ICICI Bank B Axis Bank Rate of interest, Rate of interest, charges, and Fees that do not charges, and What does the All-in-Cost in case of ECB Only the expenses in both involve any foreign Only the rate of expenses in both multiple_c and Trade Credit include according to the guarantee fees foreign currency currency interest and fees foreign currency hoice relevant regulations? and ECA charges and INR transactions paid in INR B and INR They govern both They govern both Which of the following statements is true They do not External External regarding the Foreign Exchange apply to Commercial They have not been They only pertain Commercial multiple_c Management (Borrowing and Lending) authorized Borrowings and amended since to domestic Borrowings and hoice Regulations? persons. Trade Credit. their inception. transactions. B Trade Credit. What is the maximum allowed guarantee multiple_c fee and associated costs for credit 1 percent of the 2 percent of the 3 percent of the 4 percent of the 2 percent of the hoice enhancement? principal amount principal amount principal amount principal amount B principal amount Approval from the multiple_c What is required before a borrower can Written consent Empowered Loan Registration Submission of loan Loan Registration hoice draw down on an ECB? from the lender Committee Number (LRN) agreement copies C Number (LRN)  Submission of a statutory Obtaining a Loan Changes in terms to Monthly reporting Submission of a multiple_c Which of these is NOT a requirement for auditor’s Registration be reported within of actual statutory auditor’s hoice reporting under the ECB Framework? certificate Number (LRN) 7 days transactions A certificate What action should be taken if a borrower multiple_c is deemed an untraceable entity availing File Revised Transfer the ECB to Increase reporting Submit a new ECB File Revised Form hoice ECB/Trade Credit? Form ECB another bank frequency application A ECB multiple_c Within how many working days must hoice borrowers report actual ECB transactions? 15 working days 10 working days 5 working days 7 working days D 7 working days Any party's Change in the multiple_c Which of the following changes must be contact Change in Change in the loan currency of the Change in hoice reported through a revised Form ECB? information repayment terms agreement format loan B repayment terms What happens if a borrower does not They must They can apply for They are subject to They are labeled as multiple_c comply with ECB reporting requirements restructure their new loans from any They are labeled as penalties by the untraceable hoice for eight quarters? debt bank untraceable entities Reserve Bank C entities If both lender Only with prior multiple_c In what scenario can a borrower convert and borrower If certain specified After 5 years of approval from the If certain specified hoice ECB into equity? agree verbally conditions are met borrowing Reserve Bank B conditions are met If they can If they have demonstrate sufficient significant cash If it is specifically If raising ECB will If it is specifically multiple_c Under which condition can an entity under collateral to back flow permitted under help improve their permitted under hoice corporate insolvency resolution raise ECB? the ECB. improvements. the resolution plan. internal processes. C the resolution plan. Rupee loans for Rupee loans for capital capital What type of loans can eligible corporate Loans for personal expenditures in International loans expenditures in multiple_c borrowers refinance through ECB if Only unsecured use or manufacturing and acquired from manufacturing and hoice classified as SMA-2 or NPA? loans. consumption. infrastructure. foreign banks. C infrastructure. Recognised lenders Any financial Recognised lenders Which entities are permitted to lend to Only national Foreign branches excluding foreign institution excluding foreign multiple_c borrowers raising ECB for repayment of banks within or subsidiaries of branches/subsidiari authorized by the branches/subsidiari hoice Rupee loans under specific conditions? India. Indian banks. es of Indian banks. government. C es of Indian banks.  Details of borrower Details of borrower Overall national name, amount, Names of all banks name, amount, multiple_c What information is disseminated monthly debt and purpose, and Future projections participating in purpose, and hoice on the RBI’s website regarding ECB? forecast. maturity of ECB. for ECB trends. ECB. B maturity of ECB. What is the primary responsibility for multiple_c ensuring compliance with ECB guidelines The borrowing The government The lending banks External auditors The borrowing hoice placed upon? entity itself. regulatory bodies. only. and consultants. A entity itself. Any private Only large multiple_c Which parties can raise Trade Credit (TC) company in Units or developers Only public sector multinational Units or developers hoice for imports according to the framework? India. in SEZ and DTA. units. corporations. B in SEZ and DTA. For Trade Credit transactions involving The receipt of A certificate from An inter unit An inter unit multiple_c Special Economic Zones, which document payment issued the Indian customs The invoice issued receipt generated receipt generated hoice is treated as an import document? by the bank. authority. by the supplier. through NSDL. D through NSDL. Only bank Movable assets, Real estate Cash collateral Movable assets, multiple_c What type of security can be offered by an guarantees from immovable assets, properties only from foreign immovable assets, hoice importer for raising Trade Credit? Indian banks. and guarantees. exclusively. investors. B and guarantees. It restricts the It outlines It outlines types of goods It only allows permissible permissible that can be capital goods to be It does not play any imports for which imports for which multiple_c How does the Foreign Trade Policy of India imported using purchased with role in TC Trade Credits can Trade Credits can hoice relate to Trade Credits? TC. Trade Credit. transactions. be raised. D be raised. What is the minimum average maturity period for Oil Marketing Companies multiple_c (OMCs) raising ECB under the automatic hoice route? 5 years 1 year 3 years 2 years C 3 years multiple_c What is the maximum borrowing limit per hoice Startup under the ECB framework? USD 10 million USD 3 million USD 2 million USD 5 million B USD 3 million Movable and multiple_c Which of the following can be provided as immovable Only personal Only financial Movable and hoice security for the ECB loan? assets guarantees Only real estate securities A immovable assets A resident of a A resident of a multiple_c Who qualifies as a recognized lender under Foreign banks FATF compliant Any international Any entity with a FATF compliant hoice the ECB guidelines for Startups? only country bank bank license B country  Sums placed by Amount received Amount received multiple_c What is classified as a liability to the banks for issuing by correspondent by correspondent hoice banking system? Inter-bank assets drafts Capital reserves banks D banks Borrowings Which of the following liabilities are through Tier2 Securities issued multiple_c excluded from NDTL computation for CRR capital Paid up capital and Deposits from on the open Paid up capital and hoice and SLR? instruments reserves customers market B reserves Loans taken from Loans taken from Loans taken from What type of bank loan is excluded from NaBFID by NaBFID by Loans taken from NaBFID by multiple_c the NDTL computation for CRR but not for scheduled co- scheduled NaBFID by non- Loans taken from scheduled co- hoice SLR? operative banks commercial banks scheduled banks foreign banks A operative banks Which of the following claims is not Promissory notes Claims from Verification Claims from multiple_c included in the bank's liabilities for NDTL issued by the invoking ECGC Claims from the expenses pending invoking ECGC hoice computation? bank guarantees DICGC reimbursement B guarantees Loans with Zero percent Zero percent multiple_c What type of subsidy is treated as subsidized interest time Investment tax Cash grants from interest time hoice exempted from NDTL for CRR? interest rates deposit credits the government B deposit multiple_c Inter-bank liabilities fall under which Added to total Excluded from Reclassified as Excluded from hoice category in relation to NDTL for CRR? liabilities calculations deposits Included as assets B calculations It is excluded It decreases net It is excluded multiple_c What is the effect of borrowing from the entirely from It is included in net income tax It increases entirely from NDTL hoice RBI on a bank's NDTL computation? NDTL calculation liabilities provision liabilities A calculation What is the maximum amount a banking multiple_c company can pay as commission on shares hoice issued? 2.50% 1.50% 3.00% 5.00% A 2.50% What percentage of profits must a banking multiple_c company transfer to its reserve fund hoice before declaring dividends? 20% 25% 15% 30% B 25% What is the maximum percentage of shares multiple_c a banking company can hold in another hoice company? 30% 35% 20% 25% A 30%  Which section of BR act gives the Reserve multiple_c Bank of India the power to control hoice advances by banking companies? Section 21 Section 19 Section 21A Section 22 A Section 21 multiple_c Are the rates of interest charged by banks Only for non- Yes, under specific No, they are not No, they are not hoice subject to scrutiny by courts? scheduled banks Yes, always conditions subject to scrutiny D subject to scrutiny multiple_c What is a banking company prohibited Issuing them to Holding them as a Granting loans on Granting loans on hoice from doing regarding its own shares? employees pledgee Selling at a loss their security D their security multiple_c What is the current Statutory Liquidity hoice Ratio (SLR) that banks must maintain? 15% 20% 18% 25% C 18% Unencumbered Debentures not Unencumbered dated securities of secured by dated securities of multiple_c Which of these assets can be included as Real estate the Government of government the Government of hoice part of the SLR? holdings India securities Corporate bonds B India State multiple_c What type of securities are excluded from development Funds borrowed Government Funds borrowed hoice CRR/SLR computations? loans under repo Dated securities treasury bills B under repo multiple_c What is the ceiling percentage for SLR in hoice India? 30% 50% 35% 40% D 40% In cash In Subsidiary In Subsidiary multiple_c Where should all banks maintain management General Ledger In physical stock General Ledger hoice investments in government securities? accounts (SGL) accounts certificates In savings accounts B (SGL) accounts multiple_c Which of the following is treated as a Unsecured bank State development Cash management Cash management hoice Treasury Bill for SLR purposes? loans loans Corporate bonds bills D bills What is the minimum frequency for fair multiple_c valuing the securities held in Available-for- hoice Sale (AFS)? Quarterly Biannually Monthly Annually A Quarterly How often must securities classified under the Held for Trading (HFT) sub-category multiple_c within Fair Value through Profit or Loss hoice (FVTPL) be fair valued? Monthly Weekly Quarterly Daily D Daily At what value should investments in multiple_c subsidiaries, associates, and joint ventures hoice be held? Book value Acquisition cost Fair value Market value B Acquisition cost  What is required before banks can Approval from the Approval from multiple_c reclassify investments between categories No approval is Approval from their Approval from Department of their Board of hoice such as HTM, AFS, and FVTPL? needed Board of Directors external auditors Finance B Directors What is the maximum carrying value of investments that can be sold out of the multiple_c HTM portfolio in any financial year without hoice prior approval? 5 percent 20 percent 10 percent 15 percent A 5 percent Sales under Sales under Which of the following sales is excluded liquidity liquidity multiple_c from the five percent regulatory limit on Sales to other management Sales of bonds with management hoice HTM sales? banks operations of RBI high interest rates Sales of equities B operations of RBI When should banks evaluate investments multiple_c in subsidiaries, associates, and joint hoice ventures for impairment? Quarterly Annually Weekly Monthly A Quarterly What happens to the investment It is reclassified to It is reclassified to multiple_c classification when an investee ceases to It should be It must be sold the respective It remains in the the respective hoice be a subsidiary, associate, or joint venture? ignored immediately category same category C category multiple_c Where is the headquarters of NABARD hoice located? Kolkata Mumbai Delhi Bangalore B Mumbai Which organization provides refinance to multiple_c Scheduled Commercial Banks for hoice supporting agriculture? UTI NABARD Exim Bank IDBI B NABARD multiple_c What is the minimum paid-up voting equity hoice capital required for a commercial bank? ₹2 billion ₹5 billion ₹10 billion ₹1 billion B ₹5 billion multiple_c What is the minimum capital requirement hoice for Payment Banks? ₹500 crore ₹100 crore ₹200 crore ₹50 crore B ₹100 crore What is the maximum limit of voting rights for a single shareholder in a banking multiple_c company without prior approval from the hoice Reserve Bank? 20% 10% 15% 5% B 10% What is the required minimum ratio of multiple_c authorized, subscribed, and paid-up capital hoice in a banking company? 3:2:1 2:1:1 4:2:1 5:3:1 C 4:2:1 multiple_c What is the minimum capital requirement hoice for small finance banks (SFBs)? ₹300 crore ₹200 crore ₹100 crore ₹500 crore B ₹200 crore multiple_c What is the duration for which customers hoice are required to preserve paid cheques? 10 years 8 years 5 years 3 years B 8 years What is the maximum period allowed for multiple_c payment from the buyer to the supplier hoice under the MSME Act? 45 days 30 days 60 days 90 days A 45 days What type of interest is the buyer liable to Compound pay if they fail to make payment to the Compound interest interest at two Compound interest multiple_c MSME supplier within the timeframe at three times the times the market at three times the hoice decided by Govt? Fixed interest Simple interest principal rate C principal Which council is referenced for disputes Micro and Small Small Industry National Credit Micro and Small multiple_c regarding amounts due to the MSME Banking Enterprises Development Guarantee Trustee Enterprises hoice supplier? Ombudsman Facilitation Council Corporation Company B Facilitation Council Which committee was responsible for multiple_c examining the adequacy of institutional Chakrabarty Ganguly hoice credit to the SSI sector? Committee Committee Nayak Committee Kapur Committee C Nayak Committee What is the recommended limit for multiple_c collateral-free loans to MSEs after the hoice review? Rs. 5 lakh Rs. 10 lakh Rs. 15 lakh Rs. 7 lakh B Rs. 10 lakh What type of credit facility are banks multiple_c advised to extend in case of unforeseen Standby credit Standby credit hoice circumstances for MSEs? Home loans facility Personal loans Credit cards B facility Explain the reasons for Invite the applicant Immediately Explain the reasons multiple_c What must banks do if a loan application is rejection in for a personal process a new Offer a revised for rejection in hoice rejected? writing meeting application loan amount A writing Which group reviewed the Credit Working Group multiple_c Guarantee Scheme for Micro and Small Nayak Working under Dr. Shri V.K.Sharma Shri V.K.Sharma hoice Enterprises? Group K.C.Chakrabarty Ganguly Committee Working Group D Working Group What is one of the objectives of the high- To eliminate To monitor To lower interest To assess the flow To assess the flow multiple_c level committee on credit to the SSI small business international trade rates for large of credit to the of credit to the hoice sector? loans relations corporations MSE sector D MSE sector  Display of credit Display of credit What is required from banks in terms of Confidentiality of timelines and Limited access to timelines and multiple_c the online visibility of credit related all credit document checklist information for Removal of all document checklist hoice information for MSMEs? documents prominently applicants credit information B prominently Local multiple_c What factor should banks consider when employment Capital investments Historical loan Changes in Changes in demand hoice expanding credit limits for MSEs? rates only amounts only demand patterns D patterns What is the maximum guarantee coverage multiple_c limit under the Credit Guarantee Scheme hoice of CGTMSE? ₹500 lakh ₹200 lakh ₹2 crore ₹1 crore A ₹500 lakh A Savings account holder of your Branch has recently gone abroad for a job. He is also having rental income from two flats at Mumbai. You have following products to offer the customer to maximize your business ensuring regulatory compliances. i) Advise to convert his SB Account into NRO, ii) Advise the customer to open an NRE Account to park local funds, iii) Advise multiple_c the customer to mantain his SB account as only ii and iii are only I and iii are hoice it is and open and NRO and NRE Account All are correct Only I is correct correct correct B Only I is correct Advise the Advise the Advise the A customer comes to Branch with his customer to submit customer to customer to photo and Aadhaar card. It is found that another address provide any other provide any other the present address of the customer is proof before valid address proof Account can be valid address proof multiple_c different from the address mentioned in Account can't be opening of the as per KYC norms opened with debit as per KYC norms hoice the Aadhaar. How to deal with the case? opened account within 3 months restriction C within 3 months An Order cheque presented at counter for Can be paid if It should be routed Can be paid if payment of Rs.5.00 Lakh over the counter An order cheque endorsed in blank through the endorsed in blank by a third party for payment of cash. What can't be paied in by obtaining the account of the by obtaining the multiple_c is the best action to be done by the cash over the KYC of the presenter even if it KYC of the hoice cashier? counter presenter is endorsed in blank None of these B presenter CorrectAnswerInfo The equity ratio measures the proportion of a company's assets that are financed by shareholder equity. The Price-to-Earnings (P/E) Ratio indicates how much investors are willing to pay for each dollar of earnings generated by the company. The dividend yield shows the return on investment from dividends in relation to the stock's market price. Market capitalization is computed by multiplying the share price by the total number of outstanding shares. The Receivables Turnover Ratio assesses the effectiveness of collecting receivables. The Quick Ratio provides a more stringent measure by excluding inventory from current assets. The Interest Coverage Ratio measures how easily a company can meet its interest obligations. Gross Profit Margin reflects the percentage of revenue that exceeds the cost of goods sold. The Asset Turnover Ratio assesses how effectively a company uses its assets to produce sales. The Price to Earnings (P/E) Ratio reflects investor expectations regarding a company's profitability and growth potential. The principle of Safety focuses on ensuring that the lender's funds are secure. Penal charges cannot be capitalized and should not be treated as penal interest. The penal charges for individual borrowers shall not exceed those applicable to non-individual borrowers. The joint exercise involved the naval forces of China, Iran, and Russia. Luis Montenegro was appointed as the new prime minister of Portugal after eight years of Socialist rule. The increase in inflation is primarily driven by food articles, crude petroleum, and natural gas. Reliance Industries acquired a 26% stake in the power project owned by Adani. The IDEX initiative is specifically aimed at benefiting the Indian Army and Air Force. Tata Power Solar Systems Limited completed the country’s largest Solar and Battery Energy Storage Systems project. The partnership is between Tata Power Solar Systems and the Indian Institute of Technology Delhi (IIT Delhi). Startup Mahakumbh 2024 is a groundbreaking initiative linked to renewable energy. Tata Power Solar Systems Limited is a fully integrated solar company. Indian Oil has introduced 'Storm' petrol for the motorsports industry. Flipkart launched its UPI services in collaboration with Axis Bank. All-in-Cost includes the rate of interest, other fees, expenses, and charges in both foreign currency and INR. The Foreign Exchange Management (Borrowing and Lending) Regulations govern both External Commercial Borrowings and Trade Credit. The guarantee fee and other costs in connection with credit enhancement are restricted to a maximum of 2 percent of the principal amount involved. A Loan Registration Number (LRN) must be obtained from the Reserve Bank before any draw-down on an ECB. Submission of a statutory auditor’s certificate is not specified as a requirement for reporting under the ECB framework. If a borrower is untraceable, a Revised Form ECB should be filed with 'UNTRACEABLE ENTITY' noted on top. Borrowers must report actual transactions within seven working days from the end of the month they relate to. Changes in repayment terms must be reported through a revised Form ECB at the earliest. Entities that fail to comply with reporting for eight quarters are treated as untraceable. Conversion of ECB into equity is permitted if specified conditions are met. An entity in corporate insolvency can only raise ECB if it is explicitly allowed in the resolution plan. Eligible corporate borrowers classified as SMA-2 or NPA can refinance Rupee loans used for capital expenditure in specific sectors through ECB. Recognised lenders can provide ECB for repayment of Rupee loans, but foreign branches and subsidiaries of Indian banks are excluded. The RBI publishes information regarding the borrowers, the amount, purpose, and maturity of ECB on their website for transparency. The borrowing entity holds the primary responsibility to ensure its transactions comply with applicable ECB guidelines. Units or developers in Special Economic Zones (SEZ) and Developmental Trade Areas (DTA) are allowed to raise TC for imports. In TC transactions related to SEZs, the inter unit receipt generated through NSDL is treated as the import document. Importers can offer a range of securities, including movable and immovable assets, for raising Trade Credit. The Foreign Trade Policy governs the permissible imports for which Trade Credits can be raised. OMCs can raise ECB for working capital purposes with a minimum average maturity period of 3 years. The borrowing per Startup is limited to USD 3 million or equivalent per financial year. Security can include movable, immovable, and intangible assets, among others. The lender/investor must be a resident of a FATF compliant country to be recognized. The amount received by correspondent banks is recognized as a liability to the banking system. Paid up capital, reserves, and borrowings through qualifying instruments are excluded from NDTL computation. Loans/refinance taken by scheduled co-operative banks from NaBFID are excluded from NDTL for CRR but not for SLR. Claims from invoking ECGC guarantees are classified differently and not included in liabilities for NDTL computation. Subsidy received and kept in the form of zero percent interest time deposit is exempted from NDTL for CRR maintenance. Inter-bank liabilities are exempted and excluded from NDTL for CRR computations. Any loan/refinance taken from RBI is excluded from the NDTL computation for CRR and SLR. A banking company cannot pay more than 2.50% as commission, brokerage, or discount for shares issued. Current guidelines require a banking company to transfer 25% of its profits to the reserve fund before declaring dividends. A banking company cannot hold shares exceeding thirty percent of the paid-up share capital of another company. Section 21 empowers the Reserve Bank of India to control advances by banks. According to Section 21A, the rate of interest charged by banks is not subject to scrutiny by the courts. A banking company is not allowed to grant loans or advances on the security of its own shares. The current SLR is set at 18%, as decided by the Reserve Bank of India. Unencumbered dated securities of the Government of India can be counted towards SLR. Funds borrowed under repo are exempt from CRR/SLR computation. The SLR shall not exceed 40% of Net Demand and Time Liabilities (NDTL) in India. All banks must maintain investments in government securities in SGL accounts or other specified accounts. Cash management bills are treated as Government of India Treasury Bills and can be counted as SLR securities. Securities held in AFS must be fair valued at least on a quarterly basis. Securities classified under the HFT sub-category within FVTPL must be fair valued on a daily basis. All investments in subsidiaries, associates, and joint ventures should be held at acquisition cost. Banks must obtain the approval of their Board of Directors before reclassifying investments between categories. The carrying value of investments sold out of HTM cannot exceed five percent of the opening carrying value of the HTM portfolio. Sales to the RBI under liquidity management operations such as OMO and GSAP are excluded from the regulatory limit. Banks should evaluate investments for impairment at least on a quarterly basis. When an investee ceases to be a subsidiary, associate, or joint venture, the investments are reclassified to the respective category. The headquarters of NABARD is located in Mumbai. NABARD provides refinance to Scheduled Commercial Banks against their long-term credits to agriculture and rural development. The initial minimum paid-up voting equity capital for a commercial bank must be ₹5 billion. Payment banks must have a minimum paid-up capital of ₹100 crore. No shareholder in a banking company shall exercise voting rights in excess of 10% of the total voting rights. The ratio of Authorized, Subscribed and paid up capital must be minimum 4:2:1. The minimum capital requirement for SFBs is ₹200 crore. Customers must keep their paid cheques for a minimum of 8 years for record purposes. The period agreed upon between the supplier and the buyer shall not exceed forty-five days from the date of acceptance. The buyer shall be liable to pay compound interest with monthly rests at three times the amount due. In case of dispute regarding any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council. The Nayak Committee was formed to examine the adequacy of institutional credit to the SSI sector. The mandatory limit for collateral-free loans to micro and small enterprises is recommended to be increased to Rs. 10 lakh. Banks are advised to extend standby credit facility to MSEs in case of unforeseen circumstances. Banks must convey in writing the main reason for loan application rejection within the Board approved sanction time norms. A working group under the chairmanship of Shri V.K.Sharma was constituted to review the Credit Guarantee Scheme. The high-level committee aimed to assess the flow of credit to the MSE sector. All credit related information pertaining to MSMEs shall be displayed prominently on the bank's website. Banks should consider changes in the demand pattern of MSE borrowers when increasing credit limits. The maximum guarantee coverage limit is set at ₹500 lakh per borrower. SB A/c to be converted into NRO on becoming NRI. NRE account should not be used for parking local funds