question_answer

As we all know, the Bank Rate at present is fixed at 6.75%. What does it mean in context to the banking operations?

A)  No bank will be able to give loan to any patron at a rate lower than the Bank Rate.

B)  Bank should give loan to their priority sector customers/borrowers at the rate of 6.75% only. They cannot charge less or more than this from their priority sector clients.

C)  Banks are required to invest 6.75% of their total capital on financial inclusion and inclusive banking operations.

D)  Banks will be required to give 6.75% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements.

E)  None of these