A corporate entity, 'Astra Construction Ltd,' has an aggregate credit exposure of 80 crore rupees from five banks. Bank X is the Escrow Manager. The company receives a payment of 10 crore rupees from a client into a collection account maintained with Bank Y (which has 5 crore exposure). The company management asks Bank Y to use 2 crore from this deposit to pay urgent laborers' wages and transfer the remaining 8 crore to the Escrow account at Bank X. Simultaneously, Bank Y notices that the company has a defaulted installment of 50 lakh rupees in its own loan account with Bank Y and wants to adjust this amount from the 10 crore deposit using the Right of Set-off. What is the correct operational action for Bank Y under the RBI Current Account guidelines?

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The Liquidity Coverage Ratio (LCR) requires banks to match their long-term assets with stable sources of funding to reduce their reliance on short-term funding. Reason R: The primary objective of the Liquidity Coverage Ratio (LCR) is to ensure banks maintain a sufficient stock of high-quality liquid assets to cover their short-term liquidity needs under stressed conditions. In the light of the above statements, choose the most appropriate answer from the options given below:

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The Countercyclical Capital Buffer introduced in Basel III requires banks to build up an additional buffer of capital during periods of economic expansion. Reason R: The buffer is designed to ensure that banks have an additional cushion to successfully absorb potential losses during a subsequent economic downturn. In the light of the above statements, choose the most appropriate answer from the options given below: