Single Answer MCQ
Q-00015901
What can happen if banks do not maintain the required cash balance as per RBI guidelines?
1
They may be able to lend more money
2
They can face penalties from the RBI
3
They will gain more customers
4
They will reduce their interest rates
Answer and Solution
Answer
B. They can face penalties from the RBI
Solution:
If banks do not maintain the required cash balance, they can face penalties from the RBI, as maintaining liquidity is crucial for banking operations.
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