Banking · Tandon Committee Methods
What is the recommended treatment for the financing of the Working Capital Gap under the Second Method of Lending as outlined by the Tandon Committee?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It can be fully funded through cash credit limits
- 2It should be exactly matched with the current liabilities
- 3A minimum of 25% of the total current assets should be financed using the borrower's own long-term funding sources✓
- 4It must be fully covered by external commercial borrowings
Correct answer
A minimum of 25% of the total current assets should be financed using the borrower's own long-term funding sources
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