question_answer

With a view to enlarge resources available to RRBs for a variety of purposes, especially in the context of programme of financial inclusion, general credit card etc. Reserve Bank advised that

A)  Sponsor banks should provide them lines of credit at a reasonable rate of interest

B)  RRBs may borrow from/or place funds with other RRBs, including those sponsored by other banks, subject to counter party Credit Risk Policy and limits

C)  RRBs may enter into ready forward transactions in government securities with Subsidiary General Ledger (SGL), Constituent Subsidiary General Ledger (CSGL) account holders

D)  Both [b] and [c]

E)  All of the above