Comphrensive Passage 133

Directions: Read the passage carefully and answer the questions that follow.

The government’s move to infuse upfront an additional capital of Rs 70,000 crore into public sector banks (PSBs) is welcome. The promised removal of the Damocles’ sword of punitive investigation of any banking decision hanging over the heads of bankers today will help banks lend the additional liquidity leveraging this capital would enable.

The moves to support non-banking financial companies (NBFCs) — such as enhancing additional liquidity support to housing finance companies to Rs 30,000 crore by National Housing Bank from Rs 20,000 crore and co-origination of loans by PSBs jointly with NBFCs that are reeling under a liquidity crunch — will provide a booster for fresh loans to the MSME sector.

A transparent one-time settlement policy being provided by banks to benefit MSMEs and retail borrowers in settling their overdues is pragmatic. But banks also must acquire the expertise to assess MSME loan viability and invest in data mining.

Making banks link their lending rates to the repo rates will help better transmission of monetary policy. But for this to work without impairing bank financial health, multiple structural rigidities in the system must be removed. Public sector pre-emption of the bulk of household financial savings must end, for the bond market to really take off to provide longer-term funds for infrastructure projects.

Steps such as further development of the credit default swap markets, facilitating increased trading for price discovery, and establishing an organisation to provide credit enhancement for infrastructure and housing projects make eminent sense, as does onshoring the offshore rupee derivative markets.

A coherent policy of managerial reform, including of remuneration, at public sector banks must accompany the measures announced, for them to take effect.

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Chapter:

1. What is tone of passage?

None of the above

2. What is meaning of idiom Damocles sword, as used in passage?

Imminent danger

3. According to passage, what will provide a booster for fresh loans to MSME sector?I. Loan waivers and collateral free loans.II. Increasing additional liquidity support of Rs 20,000 cr by 50%.III. Joint contribution of credit by PSBs and NBFCs.

Only II and III

4. Comphrensive Passage :

Only II

6. What can be a suitable title for given passage?

Clearance to take off for stalled credit

All Chapters

Comphrensive Passage 1

Comphrensive Passage 2

Comphrensive Passage 3

Comphrensive Passage 4

Comphrensive Passage 5

Comphrensive Passage 6

Comphrensive Passage 7

Comphrensive Passage 8

Comphrensive Passage 9

Comphrensive Passage 10

Comphrensive Passage 11

Comphrensive Passage 12

Comphrensive Passage 13

Comphrensive Passage 14

Comphrensive Passage 15

Comphrensive Passage 16

Comphrensive Passage 17

Comphrensive Passage 18

Comphrensive Passage 19

Comphrensive Passage 20

Comphrensive Passage 21

Comphrensive Passage 22

Comphrensive Passage 23

Comphrensive Passage 24

Comphrensive Passage 25

Comphrensive Passage 26

Comphrensive Passage 27

Comphrensive Passage 28

Comphrensive Passage 29

Comphrensive Passage 30

Comphrensive Passage 31

Comphrensive Passage 32

Comphrensive Passage 33

Comphrensive Passage 34

Comphrensive Passage 35

Comphrensive Passage 36

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Comphrensive Passage 38

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Comphrensive Passage 49

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Comphrensive Passage 51

Comphrensive Passage 52

Comphrensive Passage 53

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Comphrensive Passage 55

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Comphrensive Passage 57

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Comphrensive Passage 59

Comphrensive Passage 60

Comphrensive Passage 61

Comphrensive Passage 62

Comphrensive Passage 63

Comphrensive Passage 64

Comphrensive Passage 65

Comphrensive Passage 66

Comphrensive Passage 67

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You need to login to ask any Questions from chapter comphrensive-passage-133 of comprehension-passage

1.
What is tone of passage?

2.
What is meaning of idiom Damocles sword, as used in passage?

3.
According to passage, what will provide a booster for fresh loans to MSME sector?
I. Loan waivers and collateral free loans.
II. Increasing additional liquidity support of Rs 20,000 cr by 50%.
III. Joint contribution of credit by PSBs and NBFCs.

6.
What can be a suitable title for given passage?