Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | SLR, REITs & FVTPL Mandates

Q9: Which of the following instruments is explicitly REQUIRED to be classified under the Fair Value through Profit and Loss (FVTPL) category because it does not qualify for HTM or AFS?

A
Government Securities held for liquidity management
B
Investments in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
C
Debt securities with simple principal and interest payments
D
Preference shares meeting the special SPPI exception
✅ Correct Answer: B
The regulations provide a list of securities that fail HTM/AFS criteria and must be FVTPL.
This includes investments in Mutual Funds, Alternative Investment Funds, REITs, and InvITs.
Understanding the HTM vs AFS vs FVTPL distinction is crucial for acing these Investment Classification MCQs.