Bank Branch Audit- Audit of Advances

Q4. Cover under the guarantee of ECGC is available to

• A. the bank against the default of the importer.

• B. the bank against the default of the exporter.

• C. the bank against the default of the importer and exporter.

• D. the exporter against the default of the importer.

As per RBI’s guidelines, restructuring of advance may involve modification of terms of the advances / securities. This process of restructuring includes?

• A. Alteration of payment period / payable amount / the amount of instalments / rate of interest.

• B. Roll over of credit facilities.

• C. Compromise settlements where time for payment of settlement amount exceeds three months.

• D. All the above.

After how many days Bill Purchased will become NPA after being Over Due?

• 60 Days

• 30 Days

• 90 Days

• 15 Days

Q2 Which of the following category of Advance is eligible for restructuring as per RBI guidelines?

• A. NPA accounts only.

• B. NPA accounts in Substandard category only.

• C. Standard accounts only.

• D. Both NPA and Standard accounts.

Q3. As per RBI guidelines, in case of MSME accounts with aggregate exposure less than Rs. 25 crore, the account can be upgraded only if it demonstrates satisfactory performance during the specified period. Specified period refers to?

• A. One year from the commencement of the first payment of interest or principal, whichever is later.

• B. Two years from the commencement of the first payment of interest or principal, whichever is later.

• C. 6 months from the commencement of the first payment of interest or principal, whichever is later.

• D. Three years from the commencement of the first payment of interest or principal, whichever is later.

What is the provisioning percentage for Sub-Standard Asset: Infrastructure Category?

• 15%

• 20%

• 25%

• 40%

What does advances include?

• (a)Money lent by bank to its customers including interest accrued and due

• (b)Debit balances in depositor accounts 

• (c)Inter-Bank Participation Certificates.

• (d) all of the above

Which of the following is not a Category for Classification of Advances?

• Standard Asset

• Doubtful Assets

• Loss Assets

• Low-Standard Asset

Which of the following is not an example of non-fund based credit facility?

• (a)Letter of credit

• (b)Bank Guarantees 

• (c)Bank overdraft

• (d)Letter of undertakings

A sub-standard asset is one which has remained NPA for a period?

• less than or equal to 12 months

• 12 Months

• More than 12 Months

• More than 24 Months