Multiple Choice Questions on Consider the following statements 1 In India Non Banking Financial Companies can access the Liquidit........... for CDS Exam Preparation

Money and banking

Indian Economy (CDS) CDS Exam

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Study Notes

    Consider the following statements:

    1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

    2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).

    3. In India, Stock Exchanges can offer separate trading platforms for debts.

    Which of the statements given above is/are correct?

    This questions was previously asked in
    UPSC CSP GS Previous Year Paper 2024

    1 and 2 only

    Incorrect Answer

    3 only

    Incorrect Answer

    1, 2 and 3

    Incorrect Answer

    2 and 3 only

    Correct Answer
    Explanation:

    2 and 3 only.

    • Non-Banking Financial Companies (NBFCs) in India generally do not have access to the Liquidity Adjustment Facility (LAF) window of the Reserve Bank of India.
    •  Foreign Institutional Investors (FIIs) can hold Government Securities (G-Secs) in India.
    • Stock Exchanges in India can offer separate platforms for debt instruments.

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