Indian Bank Promotion 2022-23: Practice Set 03

(Based on NPA Management Policy 2022-23)

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1. …………….. will be the approval authority for sale of assets (NPAs not referred to NCLT) to ARC.


2. The Person and all the Entities taken together have combined loan outstanding (fund based and non-fund based) of not less than Rs…………… for wilful defaulter / Non Cooperative Borrower declared account and for fraud declared account LOC (Look Out Circular) will be issued irrespective of outstanding amount.


3. With a view to attract more number of BCs / SHGs / CBCs to enlist as Recovery Agents, an attractive fee structure of ……….% is payable on the recovery effected. It is decided to entrust Agri Loans, Education Loans, MSE Loans, SHG Loans etc. (with balance below Rs. 10 lakh) to BCs / SHGs / CBCs.


4. SAM Small branches will be handling NPA accounts of Rs ………….. and above and SAM LARGE branches will be handling NPA accounts of Rs……………. & above and .


5. Suit amount below Rs………… lakhs is to be filed in Civil courts and above it to be filed in DRT. Permission is to be obtained from competent authority for filing suit.


6. Whether the Bank/ Secured creditor itself can purchase properties charged to it by participating in auction under either SARFAESI or DRT or other courts:


7. OTS proposals in fresh NPA accounts can be considered by:


8. Who is is empowered to create a panel of Private Detective Agencies (PDAs) to  engage them for finding the personal assets of the borrower/guarantor and file petition before the Recovery Officer for attachment of the same?


9. Which of the following is not the overseas branch of Indian Bank.


10. Which of the following is/ are correct regarding SARFAESI action:


11. GOI, MOF has directed Banks that they should undertake recovery of NPA ruthlessly and annual recovery of at least …………% of outstanding amount under written off/Loss assets should be achieved.


12. In respect of properties of value Rs. ………. (lakhs) and above 2 valuations have to be obtained and the ……………. of the 2 valuations should be considered for fixing Reserve Price.


13. After taking symbolic or physical possession of the secured assets under SARAESI Act, Authorised Officer to file Caveat in DRT/High Court having jurisdiction, for preventing any ex-parte order in appeal/SA filed or likely to be filed. Caveat filed is valid for ……..  and on expiry, if required, Bank can file another caveat before the concerned DRT/High Court.


14. Who is the chairman of SAC (Settlement Advisory Committee):


15. Uploading/listing of property details in (e-Bikray Portal) with photograph of the property without mentioning auction date and reserve price for public view to be done within …………. (days) after publication of possession notice.


16. As per RBI guidelines, Floating provisions can be created subject to a maximum of ………..% of the ………….. profit in any particular year and can be used only for contingencies under extraordinary circumstances for making specific provisions in impaired accounts after obtaining board’s approval.


17. For initiation of action under SARFAESI Act, the amount outstanding (total dues) in the account should be more than Rs. ………. Lac and should be more than ………..% of the Principal amount and interest thereon.


18. In case, after the initiation of the recovery process by the Recovery Agent, the account is settled by OTS or the recovery proceedings are stayed by the conditional orders, the fees payable to the Recovery agent is fixed @ …………% of the amount offered by way of OTS / amount recovered by conditional orders subject to a maximum of Rs. 5.00 Lakhs.


19. As per RBI guidelines, the provisioning required for secured portion of assets under D2 category is:


20. Compromise amount shall be negotiated for bullet payment i.e., within …….. days of communicating the sanction. In other cases, Branches should ensure to recover the balance amount within a period of ………. days of communication of sanction. No interest is to be charged for the above said period.