Consider the following statements : 1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.3 only
- C.1,2 and 3
- D.2 and 3 only
Show answer
Foreign investors may hold G-Secs and exchanges run debt platforms, but the LAF window is not open to NBFCs. The Liquidity Adjustment Facility is the RBI's tool for managing day-to-day liquidity through repo and reverse repo operations.
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