Current Affairs · Banking and Finance
The Reserve Bank of India (RBI) withdrew its 2016 framework regarding the Large Exposure Framework (LEF) limits on banking system exposure to single large corporate borrowers. What was the primary objective behind adjusting these guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To enhance the profitability of state-owned banks
- 2To diversify the banks' portfolios and balance financial stability with growth✓
- 3To encourage foreign investments
- 4To reduce corporate defaults
Correct answer
To diversify the banks' portfolios and balance financial stability with growth
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