Why financial institutions and banks regulated under RBI are exempted from maintaining DRR and DRI?
Dear Student
It is as per Law that financial institutions and banks regulated under RBI are exempted from maintaining DRR and DRI.
The possible reason for it may be that all these Institutions are backed by the government of India and since the government is the law forming body it can and would never default in payment to debenture holders. Therefore government institutions are not required to maintain those reserves and investments.
Regards
It is as per Law that financial institutions and banks regulated under RBI are exempted from maintaining DRR and DRI.
The possible reason for it may be that all these Institutions are backed by the government of India and since the government is the law forming body it can and would never default in payment to debenture holders. Therefore government institutions are not required to maintain those reserves and investments.
Regards