Consider the following about Marginal Standing Facility (MSF) Rate.

1) It is rate at which scheduled banks can borrow funds for their long-term needs.

2) Funds are borrowed at a rate higher than that prevailing under Liquidity Adjustment Facility (LAF).

Which of the above is/are correct?

An internal Study Group constituted by the Reserve Bank of India (RBI) has recommended that banks should set interest rates based on an external benchmark and not as per internal benchmarks as is the practice now. What would qualify as external benchmarks in this context?

1) Cost of funds for the banks

2) RBI’s policy repo rate

3) Global economic downturns

Select the correct answer using the codes below.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has reduced short-term lending rate, or repo rate, by 25 basis points to 6%. What may be the impact of this move on the banking system?

1) Draining of foreign exchange reserves

2) Pickup in short-term borrowing due to lowering of interest rates

3) Sudden increase in international trade and commerce of India

Select the correct answer using the codes below.

With reference to Chit funds, consider the following statements.

1) Any savings scheme run by a NBFC can be termed as chit funds.

2) Some chit funds are run by state governments.

3) A chit fund is regulated by Central as well as state laws.

Select the correct answer using the codes below.

With reference to Regional Rural Banks (RRBs), consider the following statements.

1. They are not commercial banks.

2. By the mandate, their operations must be restricted to rural areas.

3. These banks cannot provide the services of credit or debit cards.

4. In some districts, they are nodal agencies for disbursement of MGNREGA wages.

Select the correct answer using the codes below.