Consider the following statements about RBI’s 5:25 flexible structuring scheme:

  1. The scheme envisages to reduce the Asset Liability Mismatch (ALM) of banks
  2. The scheme is applicable only to projects in the Infrastructure and Core Industries sector

Which of the above statements is/are correct?

Answer: [C] Both 1 & 2

The 5:25 flexible structuring scheme, of RBI allows the lenders to fix longer amortization period for loans to projects in the infrastructure and core industries sector, for 25 years, based on the economic life or concession period of the project, with periodic refinancing, at every 5 years.

This question is a part of GKToday's Integrated IAS General Studies Module