<<12345678910111213141516171819202122232425262728>> 1. The purpose of restructuring of loans and advances is:To make the operations of the enterprise viable againTo help in employment generationTo comply with RBI guidelinesTo increase bank's advancesQuestion 1 of 28 2. Banks enter into compromise with borrowers in caseborrower has abundant money with him than the security value.selling of security involves legal processthe PV of compromise offer is more than the PV of realizable value of available securities.all of the aboveQuestion 2 of 28 3. What does credit default refer to in banking terms?The inability or unwillingness of a customer to meet commitments in financial transactionsThe availability and free transfer of foreign currency fundsThe repayment of principal and/or interest amount as per the terms of repaymentThe implementation of an industrial project that has been abandonedQuestion 3 of 28 4. How are stressed assets defined?Assets with delayed payments as per the repayment termsAssets facing a reasonably certain prospect of defaultAssets with funds/securities settlement issuesAssets with guarantees or letters of credit issuesQuestion 4 of 28 5. What defines a wilful defaulter according to RBI guidelines?Defaulting in payment without the capacity to honor obligationsDefaulting in payment and diverting funds for unauthorized purposesDefaulting in payment due to reasons beyond the borrower's controlDefaulting in payment and using funds for the intended purposeQuestion 5 of 28 6. Which scenario would NOT classify a borrower as a wilful defaulter?Defaulting in payment despite having the capacity to honor obligationsDefaulting in payment and siphoning off the fundsDefaulting in payment and using funds for the specified purposeDefaulting in payment and disposing of assets without the lender's knowledgeQuestion 6 of 28 7. Which of the following scenarios constitutes diversion of funds according to the provided definitions?Investing borrowed funds in other companies with lender approvalRouting funds through other banks without informing the lenderUsing short-term working capital funds for long-term purposesDeploying borrowed funds for the purposes intended by the loan sanctionQuestion 7 of 28 8. How is siphoning of funds defined ?Investing borrowed funds in unrelated assetsUsing funds for activities not in line with the loan purposeTransferring funds to subsidiaries with lender approvalUtilizing funds for operations detrimental to the borrower's financial healthQuestion 8 of 28 9. According to the RBI guidelines, under what circumstances can a lending institution consider publishing the photographs of defaulting borrowers?Only if they have defaulted on education loansOnly if they have been declared as wilful defaultersOnly if they are non-whole time directorsOnly if they are guarantors of borrower firms/companiesQuestion 9 of 28 10. What condition exempts non-whole time directors from being considered as wilful defaulters?They must satisfy special conditions set out by the lending institutionThey must have approval from the Board of DirectorsThey must be associated with education loansThey must not have any involvement in the defaulting borrower's actionsQuestion 10 of 28 11. What criteria determine the classification of a borrower as a non-cooperative borrower?Defaulting in timely repayment and having aggregate fund-based and non-fund based facilities of Rs. 5 croresDefaulting in timely repayment and not engaging constructively with the lenderDefaulting in timely repayment and obstructing sale of securitiesDefaulting in timely repayment and denying access to assets financed/collateral securitiesQuestion 11 of 28 12. Who is responsible for confirming the order of the Committee classifying a borrower as non-cooperative?The Board of the concerned bank/FIAn independent review committee consisting of directorsThe Central Repository of Information on Large Credits (CRILC)The Executive Director of the bank/FIQuestion 12 of 28 13. What is the role of the Review Committee in the process of classifying borrowers as non-cooperative?Issuing the Show Cause Notice to the borrowerConducting a personal hearing for the borrowerReviewing the order of the Committee and confirming itReporting information on non-cooperative borrowers to CRILCQuestion 13 of 28 14. What is the most desirable course of action for a bank when dealing with a stressed asset?Exit from the accountRegularisationEnforcement of covenantsReduction of repayment periodQuestion 14 of 28 15. In case of sole banking, what may be a challenge for a bank wanting to exit a problematic account?Withdrawing all concessions and prioritiesEnforcing all covenants in letter and spiritIgnoring all pleadings by the borrowerFinding it difficult to exit the accountQuestion 15 of 28 16. In cases where rectification and restructuring are not feasible, what action do banks typically initiate for recovery?Rectification proceedingsRestructuring proceedingsLegal actionRevision proceedingsQuestion 16 of 28 17. What is the limitation period for the final decree in civil court proceedings for recovery of bank dues?6 months10 years12 years15 yearsQuestion 17 of 28 18. What is the threshold amount for cases to be filed in Debt Recovery Tribunals (DRTs) by banks and financial institutions?Rs. 10 lakhRs. 15 lakhRs. 20 lakhRs. 25 lakhQuestion 18 of 28 19. Which entities can file recovery cases in Debt Recovery Tribunals (DRTs) apart from banks and financial institutions?CorporationsGovernment agenciesNon-banking financial companies (NBFCs)Private individualsQuestion 19 of 28 20. Under the guidelines issued by the Reserve Bank of India, up to what amount can commercial banks and financial institutions make use of Lok Adalats for dispute settlement?Up to Rs. 10 lakhUp to Rs. 15 lakhUp to Rs. 20 lakhUp to Rs. 25 lakhQuestion 20 of 28 21. In Lok Adalats convened by Debt Recovery Tribunals (DRTs) or Debt Recovery Appellate Tribunals (DRATs), what is the criterion for referring cases by banks?Cases involving a minimum of Rs. 5 lakhCases involving a minimum of Rs. 10 lakhCases involving any amountCases involving a minimum of Rs. 15 lakhQuestion 21 of 28 22. What is the purpose of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)?To facilitate the transfer of financial assets to asset reconstruction companiesTo waive stamp duty on transactions related to financial assetsTo integrate records of property registered under various registration systemsTo enforce security interest for realisation of duesQuestion 22 of 28 23. How does the SARFAESI Act, 2002 facilitate the recovery of dues by banks and financial institutions?By allowing borrowers to appeal against measures taken by the secured creditor without depositing any portion of the money dueBy mandating the involvement of courts or tribunals in the enforcement of security interestBy creating a central registry to maintain records of transactions related to secured assetsBy enabling secured creditors to take possession over collateral upon default in repayment without court interventionQuestion 23 of 28 24. What is the primary objective of the framework for restructuring and rehabilitation of MSMEs as per the RBI circular dated 17-03-2016?To classify stressed MSME accounts as NPAsTo facilitate promotion and development of MSMEsTo liquidate stressed MSME accounts immediatelyTo impose stricter regulations on MSME borrowersQuestion 24 of 28 25. How does the framework for restructuring and rehabilitation of MSMEs facilitate resolution decisions?By allowing only the convener bank to make resolution decisionsBy involving a committee with representatives from various stakeholdersBy restricting the resolution options to rectification onlyBy excluding State Government representatives from the committeeQuestion 25 of 28 26. What is the significance of the RBI circular dated January 1, 2019, regarding restructuring of MSME accounts?It permits restructuring of MSME accounts without any downgrade in asset classification.It mandates immediate classification of MSME accounts as NPAs upon restructuring.It imposes stricter regulations on MSME borrowers during restructuring.It prohibits restructuring of MSME accounts under any circumstances.Question 26 of 28 27. Under what conditions can a financial asset be sold to a Securitisation company (SC)/Reconstruction company (RC) according to the RBI circular?If the asset is a Standard Asset and under consortium/multiple banking arrangements.If restructuring has been decided as the Resolution Plan by the bank/FI.If the asset is reported as SMA-2 by the bank/FI to CRILC.If the asset is classified as non-performing asset in the books of other banks/FIs, regardless of consortium/multiple banking arrangements.Question 27 of 28 28. What is the requirement for holding non-performing financial assets before selling to other banks/financial institutions/NBFCs according to the RBI circular?At least 6 months.At least 18 months.At least 12 months.No holding period is required.Question 28 of 28 Loading...
