Multiple choice

Some public sector banks are being given additional funds by the government. What is the purpose for this funding?

  1. To distribute funds received from the World Bank.

  2. To maintain capital adequacy ratio as per norms.

  3. To remain classified as scheduled commercial bank.

  4. In terms of instructions from RBI.

  5. None of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Government gives funds to maintain the capital adequacy ratio. So, this is the correct choice.