Which among the following is the objective of the 5 25 scheme introduced by Reserve Bank of India ........

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Which among the following is the objective of the 5:25 scheme introduced by Reserve Bank of India?

To allow RBI to change the Repo Rates by 25 basis points every 5 months.

To allow banks to extend long-term loans of 20-25 years, while refinancing them every 5 or 7 years.

To limit Statutory Liquid Ratio to a maximum of 25% while keeping repo rate less than 5%

To help the banks to bring down the non-performing assets to 5% of total advances by 2025.

Explanation:

5:25 scheme - RBI's flexible financing scheme, allows banks to extend long-term loans of 20-25 years to match the cash flow of projects, while refinancing them every five or seven years. It creates incentive for banks to come together with their borrowers to rehabilitate stressed assets.