Current Affairs · Banking Regulations

Evaluate the following statements regarding the regulatory framework for commercial banks entering the pension fund management business as a Pension Fund Manager (PFM): Statement I: A bank can only enter the pension fund management business through a subsidiary specifically set up for this purpose and is not allowed to undertake this activity departmentally. Statement II: The eligibility criteria for a bank to set up a PFM subsidiary include a minimum net worth of 500 crore rupees and the maintenance of a Capital to Risk-weighted Assets Ratio (CRAR) of at least 11 percent. Statement III: The PFM subsidiary of a bank is strictly prohibited from managing the pension funds of the employees of its own parent bank. Statement IV: The bank must obtain prior approval from the Reserve Bank of India (RBI) before approaching the PFRDA for a license to act as a Pension Fund Manager. Which of the following options correctly identifies the true statements?