IBPC, SRMS
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What is IBPC in the context of Indian banking?
IBPC stands for Inter-Bank Participation Certificate, a short-term instrument used by banks to share credit exposures and manage liquidity by selling a portion of their loan portfolio to other banks.
What is the maximum tenor permitted for an IBPC without risk sharing?
Maximum 90 days for IBPC without risk sharing.
Who can issue Inter-Bank Participation Certificates in India?
Scheduled commercial banks (excluding Regional Rural Banks) can issue IBPCs to other scheduled commercial banks as per RBI guidelines.
Under IBPC with risk sharing, what is the maximum permissible tenor?
Maximum 180 days for IBPC with risk sharing.
What are the two types of Inter-Bank Participation Certificates?
IBPCs are of two types: with risk sharing (where credit risk is transferred to the participating bank) and without risk sharing (where credit risk remains with the issuing bank).
What is the minimum denomination prescribed for issuing an IBPC?
Minimum denomination is Rs. 1 crore for IBPC.
What is the minimum and maximum tenure of an IBPC?
IBPCs have a minimum tenure of 91 days and a maximum tenure of 180 days as prescribed by RBI.
In IBPC without risk sharing, who bears the credit risk of the underlying asset?
Issuing bank bears the credit risk in no-risk-sharing IBPC.
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