The question asks about the primary objective of 'Basel III Accord'. This requires knowledge of international banking regulations and their purpose.
B) improve banking sector's ability to deal with financial and economic stress and improve risk management. Basel III is a comprehensive set of international banking reforms developed by the Basel Committee on Banking Supervision (BCBS) in response to the global financial crisis of 2007-2008. Its primary objective is to strengthen bank capital requirements, improve liquidity, and reduce leverage, thereby enhancing the banking sector's resilience to financial and economic stress and improving risk management.
The question asks to identify the correct statements regarding the Financial Stability and Development Council (FSDC). We need to evaluate each statement based on the structure, leadership, and functions of the FSDC.
C) 2 and 3 only. Statements 2 and 3 are correct, while statement 1 is incorrect.
The question asks about the purposes of the Marginal Cost of Funds based Lending Rate (MCLR) announced by the RBI. We need to evaluate each given statement to determine if it aligns with the objectives of MCLR.
C) Both 1 and 2 — Both statements accurately describe the purposes of the Marginal Cost of Funds based Lending Rate (MCLR) introduced by the RBI. MCLR was designed to enhance transparency in interest rate calculation and ensure that lending rates are fair and responsive to market conditions for both borrowers and banks.
The question asks for the best description of 'Core Banking Solution' (CBS). We need to evaluate each given statement against the common understanding and definition of CBS in the banking sector.
A) 1 only
Statement 1 perfectly encapsulates the essence of a Core Banking Solution. It highlights the networking of branches and the resulting "anywhere banking" facility for customers, which is the hallmark of CBS implementation.
The question asks about the primary objectives behind the establishment of Small Finance Banks (SFBs) in India. To answer this, one needs to recall the mandate and target beneficiaries of SFBs as defined by the Reserve Bank of India (RBI).
A) 1 and 2 only. Statements 1 and 2 correctly identify the primary objectives of Small Finance Banks, which are to provide credit to small business units and small and marginal farmers, thereby promoting financial inclusion.
The question asks to identify the correct statements regarding the National Payments Corporation of India (NPCI). We need to evaluate each statement based on NPCI's objectives and initiatives.
Since both statements 1 and 2 are correct, the option that includes both is the right answer.
Correct Option: C) Both 1 and 2