Indian Bank Promotion 2022-23: Practice Set 02

(Based on Credit Monitoring EWS & RFA Policy 2022-23)

(There is a total of 20 Questions which cover almost complete “Credit Monitoring, EWS & RFA Policy- 2022-23”. Attempt all. Check the score. Go through your response and correct answers thereof and try again. The full set with your response and correct answers will automatically be emailed to you once you submit it.)

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1. Agencies for Specialised Monitoring (ASM) is to be engaged in respect of projects with an exposure of Rs. …………. and above and exposure of specialised nature where our bank is the sole banker, leader of consortium or largest lenders in Multiple banking arrangements.

 
 
 
 

2. A system of legal audit for accounts with exposure of Rs. …………. where mortgage of property is involved, has been put in place.

 
 
 
 

3. For monitoring of high value of advances of Rs. ………….., the monthly Credit Relationship Manager Report (CRM Report) is to be submitted through the software made available in EWS portal.

 
 
 
 

4. The Bank may appoint Nominee Directors on the boards of borrower companies in the following instances:

  • Where Bank’s credit exposure to the company exceeds Rs. …………….. Crore or
  • Where Bank’s credit exposure exceeds Rs. ……….. Crore and the account has become SMA/ NPA
 
 
 
 

5. All Standard Borrowal A/Cs with rating of IB-BBB (Combined) and above are to be covered under Credit Audit if the limit is Rs. ………. Cr and above.

 
 
 
 

6. SAMC (Standard Assets Monitoring Committee) at CO will monitor individual accounts with limits of Rs. ………… and above. The committee shall also review the consolidated position of SMAs (Special Mention Accounts) of Rs. …………….. and above. 

 
 
 
 

7. For accounts classified as ‘fraud’, the Bank should make a provision at one go to the full extent irrespective of the value of security.

 
 

8. Sanctioning authorities should sanction Home Loan and other Personal Loan Products only after due diligence and after verification from any two of the four CICs (CIBIL/ CRIF HIGHMARK/ EXPERIAN/ EQUIFAX) in case loan amount of Rs. ………… and above.

 
 
 
 

9. RBI has set up the CRILC to collect, store and disseminate data on all borrowers’ credit exposures including Special Mention Accounts (SMA0, 1 & 2) having aggregate fund-based and non-fund based exposure of Rs…………. and above.

 
 
 
 

10. All Review/ Renewal proposals with limits of Rs. ……….. and above shall be put under LRM (Loan Review Mechanism) within ………..  from date of sanction:

 
 
 
 

11. Which type of SMS is sent from Central office level to loan accounts ?

 
 
 
 
 

12. Threshold limit (Working Capital- FB + NFB) for Stock/ Book debt audit for Individual/ Partnership Firm is Rs. …………. and above.

 
 
 
 

13. The Bank is to obtain a certified copy of the passport of the promoters/ directors and other authorized signatories of companies availing loan facilities of Rs. …………… and above.

 
 
 
 

14. For accounts under SMA-1 category, ………………… notice is to be sent to borrowers/ guarantors and ………………. visit is to be done to borrowers’/ guarantors’ place.

 
 
 

15. …………………. is required to conduct unit visit yearly for exposure of Rs. 5 Cr to 10 Cr.

 
 
 
 

16. Coverage under LRM and Credit Audit shall not be less than ………. % and ……… % of the standard domestic credit outstanding as on the previous year end respectively. It should cover not only the value but also the numbers respectively.

 
 
 
 

17. SMA Audit should be conducted for accounts with exposure of Rs.  ……………… other than Government accounts where the account status is SMA 1 or 2 twice in the last 6 months.

 
 
 
 

18. As per RBI direction, the threshold for EWS and RFA is exposure of Rs. ………….. or more. However, the threshold for RFA was fixed at Rs. ………… and above as per our Bank Board direction. The EWS software triggers signals for accounts are now scaled down covering loan exposure of Rs. …………. and above. 

 
 
 
 

19. RBI has advised to go for periodical legal audit within three years from the last legal audit in case of all credit exposure of Rs. ………….. .

 
 
 
 

20. The cut-off limit for classifying borrwers as non-cooperative would be those borrowers having aggregate fund-based and non-fund based exposures of Rs. ………… from our Bank.

 
 
 
 

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