BP · VIDEOLECTURE

IBPC, SRMS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.

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Q

What is IBPC in the context of Indian banking?

A

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.

Q

What is the maximum tenor permitted for an IBPC without risk sharing?

A

Maximum 90 days for IBPC without risk sharing.

Q

Who can issue Inter-Bank Participation Certificates in India?

A

Scheduled commercial banks (excluding Regional Rural Banks) can issue IBPCs to other scheduled commercial banks as per RBI guidelines.

Q

Under IBPC with risk sharing, what is the maximum permissible tenor?

A

Maximum 180 days for IBPC with risk sharing.

Q

What are the two types of Inter-Bank Participation Certificates?

A

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).

Q

What is the minimum denomination prescribed for issuing an IBPC?

A

Minimum denomination is Rs. 1 crore for IBPC.

Q

What is the minimum and maximum tenure of an IBPC?

A

IBPCs have a minimum tenure of 91 days and a maximum tenure of 180 days as prescribed by RBI.

Q

In IBPC without risk sharing, who bears the credit risk of the underlying asset?

A

Issuing bank bears the credit risk in no-risk-sharing IBPC.

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