<<123456789101112131415161718192021222324252627282930313233343536373839404142434445464748>> 1. As per RBI guidelines, the projected turnover method of assessment should be applied for working capital limits of up to Rs. __ in case of MSEs.One croreTwo croresFive croresTen croresQuestion 1 of 48 2. Floating Interest rate on a new advance to a medium enterprise is linked to which of the following?Base rateEBLRPLRMCLRQuestion 2 of 48 3. The total priority sector target for foreign banks, operating in India, is20%32%40%18%Question 3 of 48 4. What role does credit play in driving the national economy?It decreases industrial production and services.It restricts individuals from purchasing assets.It provides leverage for entrepreneurs to undertake larger projects.It has no impact on economic growth.Question 4 of 48 5. What is one potential consequence of excessive availability of credit for nonproductive purposes?Decreased inflationary pressureIncreased demand for goods and servicesRural indebtedness and creation of landless populationGreater control over economic growthQuestion 5 of 48 6. What was a significant event in the history of credit flow from the banking sector in India?The growth of private moneylendersNationalisation of banks in 1969High level of illiteracyMisuse of credit for political endsQuestion 6 of 48 7. What concept became an integral part of the banking system after the nationalisation of banks in India?Rural indebtednessIlliteracyPriority SectorBig business housesQuestion 7 of 48 8. What are the basic principles that influence a bank's loan policies and credit management?Safety of funds, purpose, and profitabilityLiquidity, security, and risk spreadSafety of funds, purpose, profitability, and liquiditySecurity, risk spread, and profitabilityQuestion 8 of 48 9. Which of the following is NOT a type of borrower ?Sole proprietary firmReal Estate Investment TrustsLimited Liability CorporationsJoint Ventures through Special Purpose VehiclesQuestion 9 of 48 10. Which act governs individuals as borrowers?Indian Partnership Act 1932Companies Act 2013Indian Contract Act 1872Limited Liability Partnership Act 2008Question 10 of 48 11. Which type of borrowers are governed by the Indian Trusts Act 1882?Real Estate Investment TrustsTrustsHindu Undivided FamiliesCo-operative SocietiesQuestion 11 of 48 12. What does a bank's loan policy typically include guidelines on?Credit appraisal and risk managementMarket conditions and competitors' policiesExposure limits and discretionary powers for credit sanctioningDelivery procedures and control mechanismsQuestion 12 of 48 13. What is the primary purpose of credit appraisal?To identify suitable borrowers for a loanTo ensure the bank's funds are utilized effectivelyTo determine the interest rate for the loanTo create charge over collateral securitiesQuestion 13 of 48 14. Which factor does credit risk management primarily aim to address?Delivery proceduresMarket conditionsSafety of fundsControl and monitoring mechanismsQuestion 14 of 48 15. Which of the following is NOT considered an appropriate use of working capital finance according to RBI guidelines?Acquisition of fixed assetsInvestments in capital marketsPurchase of shares in associate companiesFinancing operational expensesQuestion 15 of 48 16. How does RBI monitor priority sector lending by commercial banks?Through regular visits to assisted unitsBy inspecting securities charged hypothecated to the banksBy reviewing periodical returns received from banksBy conducting internal audits of bank branchesQuestion 16 of 48 17. Which sector is NOT included in the categories under the priority sector according to RBI guidelines?AgricultureMicro, Small and Medium EnterprisesInfrastructureRenewable EnergyQuestion 17 of 48 18. What is the upper cap for agricultural finance provided for pre and post-harvesting activities, including transportation?Rs. 50 lakhRs. 75 lakhRs. 1 croreRs. 2 croresQuestion 18 of 48 19. Which type of loans against Negotiable Warehouse Receipts (NWR) or eNWR are considered under Priority Sector Lending (PSL)?Up to Rs. 25 lakhUp to Rs. 50 lakhUp to Rs. 75 lakhUp to Rs. 1 croreQuestion 19 of 48 20. Loans to cooperative societies of farmers for purchasing the produce of members are considered under Priority Sector Lending up to:Rs. 2 croresRs. 5 croresRs. 10 croresRs. 20 croresQuestion 20 of 48 21. What is the maximum limit for loans provided for agricultural infrastructure and food and agricultural processing under Priority Sector Lending?Rs. 50 croreRs. 75 croreRs. 100 croreRs. 200 croreQuestion 21 of 48 22. Which of the following is considered a salient feature under priority sector lending?Loans to entities assisting the decentralised sector in the supply of inputs and marketing of output of artisans, village, and cottage industries.Loans sanctioned by banks to MSMEs for on-lending to other sectors.Overdrafts to pension account holders.Loans to large corporate houses.Question 22 of 48 23. What qualifies as a priority sector lending feature according to the given text?Loans to multinational corporations.Factoring transactions on a non-recourse basis by banks.Loans to MSMEs engaged in manufacturing and service only.Overdrafts to high net worth individuals.Question 23 of 48 24. Which category of entities is eligible for consideration under the sub-target of 7.5% prescribed for the Micro enterprises segment within the priority sector?Large corporations.Start-up companies.Units in the Khadi and Village Industries Sector (KVI) regardless of their size of operations.Multinational companies.Question 24 of 48 25. What is the maximum loan amount that can be provided to start-ups according to the definition of the Ministry of Commerce and Industry, Government of India?Up to 10 croresUp to 25 croresUp to 50 croresUp to 100 croresQuestion 25 of 48 26. What is the maximum loan amount individuals can receive for housing finance in metropolitan centres with a population of ten lakh and above?Up to 20 lakhUp to 25 lakhUp to 30 lakhUp to 35 lakhQuestion 26 of 48 27. For loans for repairs to damaged dwelling units, what is the maximum loan amount individuals can receive in other centres?Up to 4 lakhUp to 6 lakhUp to 8 lakhUp to 10 lakhQuestion 27 of 48 28. How much is the overall cost limit of a dwelling unit in metropolitan centres for housing loans to individuals?20 lakh30 lakh35 lakh45 lakhQuestion 28 of 48 29. Which institution approves loans for on-lending for housing finance up to 20 lakh for individual borrowers?National Housing Bank (NHB)Reserve Bank of India (RBI)Securities and Exchange Board of India (SEBI)Ministry of Housing and Urban AffairsQuestion 29 of 48 30. What is the maximum loan amount individuals can receive for housing finance in centres other than metropolitan areas?Up to 15 lakhUp to 20 lakhUp to 25 lakhUp to 30 lakhQuestion 30 of 48 31. What is the maximum loan limit per borrower for setting up schools, drinking water facilities, and sanitation facilities under the category of Social Infrastructure?2 crores5 crores7 crores10 croresQuestion 31 of 48 32. Under the Social Infrastructure category, what is the maximum loan limit per borrower for building health care facilities in Tier II to Tier VI centres, including those under "Ayushman Bharat"?5 crores7 crores8 crores10 croresQuestion 32 of 48 33. Under 'Social Infrastructure', what entities are eligible for bank credit extended for on-lending to individuals?HospitalsSchoolsMicro Finance Institutions (MFIs)Non-governmental organizations (NGOs)Question 33 of 48 34. What is the maximum loan limit per borrower for renewable energy purposes like solar-based power generators, biomass-based power generators, and wind mills?20 crores25 crores30 crores35 croresQuestion 34 of 48 35. What is the maximum loan limit per borrower for non-conventional energy-based public utilities such as street lighting systems and remote village electrification?20 crores25 crores30 crores35 croresQuestion 35 of 48 36. What is the maximum loan limit per borrower for individuals and their SHGs/JLGs directly provided by banks?1.5 lakhs1.6 lakhs1.7 lakhs1.8 lakhsQuestion 36 of 48 37. What is the maximum loan limit per borrower for SHG/JLG provided directly by banks for activities other than agriculture or MSME?1.8 lakhs1.9 lakhs2.0 lakhs2.1 lakhsQuestion 37 of 48 38. What paradigm shift did the MSMED Act, 2006 bring to the MSME ecosystem in India?Introduction of new tax regulationsImplementation of new labor lawsAdoption of new classification criteria based on investment and turnoverEstablishment of export quotasQuestion 38 of 48 39. What are the criteria for classifying an enterprise as a "Micro" enterprise under the MSMED Act, 2006, as amended in July 2020?Investment of Rs. 10 crores and turnover of Rs. 50 croresInvestment of Rs. 1 crore and turnover of Rs. 5 croresInvestment of Rs. 50 crores and turnover of Rs. 250 croresInvestment of Rs. 5 crores and turnover of Rs. 1 croreQuestion 39 of 48 40. What is the maximum loan amount for which banks are not mandated to accept collateral security in the case of loans extended to units in the MSE sector?Rs. 5 lakhRs. 15 lakhRs. 10 lakhRs. 20 lakhQuestion 40 of 48 41. Under which program administered by KVIC are banks advised to extend collateral-free loans up to Rs. 10 lakh to all units financed?Pradhan Mantri Jan Dhan Yojana (PMJDY)Swachh Bharat AbhiyanPrime Minister Employment Generation Programme (PMEGP)National Rural Employment Guarantee Act (NREGA)Question 41 of 48 42. What is the purpose of classifying stressed assets as Special Mention Accounts (SMA)?To identify potential NPAs in the banking sectorTo categorize accounts with overdue paymentsTo streamline international banking practicesTo track accounts with timely paymentsQuestion 42 of 48 43. According to the provided classification, when are accounts categorized as SMA-1?When payments are overdue by 1-30 daysWhen payments are overdue by 31-60 daysWhen payments are overdue by 61-90 daysWhen payments are made on timeQuestion 43 of 48 44. What is the main objective behind identifying Special Mention Accounts (SMA) in term loan accounts?To penalize defaulters immediatelyTo provide relief to borrowers facing financial difficultiesTo prevent the slippage of potential NPAs by initiating preventive measuresTo ensure timely payments from borrowersQuestion 44 of 48 45. What is the maximum limit for bank credit to NBFCs (including HFCs) for on-lending as a percentage of the individual bank's total priority sector lending?2%5%7%10%Question 45 of 48 46. What does CRILC Main reporting cover?Loans of Rs 1 crore and aboveLoans of Rs 5 crore and aboveCurrent account balances of Rs 5 crore and aboveNon-cooperative borrowers with any loan amountQuestion 46 of 48 47. When are CRILC SMA accounts with exposure of Rs 5 crore and above reported?MonthlyQuarterlyWeeklyAnnuallyQuestion 47 of 48 48. What is the threshold for reporting red-flagged accounts in CRILC?Rs 10 croreRs 25 croreRs 50 croreRs 100 croreQuestion 48 of 48 Loading...