Multiple choice

The base rate is required to be reviewed by banks at least

  1. once in a month

  2. once in a quarter

  3. once in half a year

  4. once in a year

  5. once in two years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The base rate is the minimum lending rate below which banks are not permitted to lend. RBI regulations require banks to review this rate at least quarterly to ensure it reflects current market conditions.

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