Module: | KYC, NPAs, Advances & Investment Valuations
Q225: Which of the following statements accurately reflect the regulations governing the "Base Rate" administration?
1. There can be only one Base Rate for each bank.
2. Banks shall review the Base Rate at least once in a quarter.
3. Banks are generally prohibited from reviewing the Base Rate methodology, for a period of three years from the date of its finalization.
4. Banks that commenced operations after September 2, 2013, are permitted to revise their methodology once within a year from the date of commencement of business.
2. Banks shall review the Base Rate at least once in a quarter.
3. Banks are generally prohibited from reviewing the Base Rate methodology, for a period of three years from the date of its finalization.
4. Banks that commenced operations after September 2, 2013, are permitted to revise their methodology once within a year from the date of commencement of business.
✅ Correct Answer: D
All statements are correct.
There is a single Base Rate reviewed quarterly.
The methodology is generally locked for three years to ensure stability, but a specific exception exists for new banks (commencing after Sept 2, 2013) allowing one revision within their first year of operations.
There is a single Base Rate reviewed quarterly.
The methodology is generally locked for three years to ensure stability, but a specific exception exists for new banks (commencing after Sept 2, 2013) allowing one revision within their first year of operations.