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From a banking perspective, IBC is most useful when:

easy Q2 of 15
Banking Awareness - Banking Acts, Reforms & Risk Management
From a banking perspective, IBC is most useful when:
ADepositors demand early withdrawal
BBorrowers fail to repay large corporate loans
CBanks revise their lending rates
DNew branches are opened
Step-by-Step Solution

  1. Step 1: Identify the target cases of IBC

    IBC deals with insolvency of borrowers.

  2. Step 2: Connect with banking exposure

    Banks mainly use IBC for large corporate loan defaults.

  3. Final Answer:

    Borrowers fail to repay large corporate loans → Option B

  4. Quick Check:

    Corporate default → IBC invoked ✅
Quick Trick: Big corporate default = IBC.
Common Mistakes:
MISTAKES
  • Applying IBC to routine retail banking issues.
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