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Discussion

In which year Liquidity Adjustment Facility (LAF) was introduced by Reserve Bank of India?

  • A.1998
  • B.2000
  • C.2002
  • D.2004

Answer: B

As part of the financial sector reforms in 1998 the Committee on Banking Sector Reforms (Narasimham Committee II), Liquidity Adjustment Facility (LAF) was introduced under which the Reserve Bank would conduct auctions periodically.

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