Multiple choice

Liquidity rules have been formulated and enforced by

  1. World Bank

  2. State Govt.

  3. Central Govt.

  4. RBI
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Reserve Bank of India (RBI) is India's central bank and primary regulator for banking sector liquidity. It formulates and enforces liquidity frameworks like CRR, SLR, LCR, and liquidity coverage ratios to ensure banks maintain adequate liquid assets. State and Central governments don't directly set banking liquidity rules - that's the central bank's mandate.

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