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WorksheetsCPRC01
Total questions: 110
Worksheet time: 55mins
Name
Class
Date
1.
Which among the following is not a characteristics of Retail Credit.
a)
Low value & low volume loans
b)
Retail Credit is based on the maxim' Do not keep all the eggs in one basket.'
c)
Provides an opportunity to banks to diversify their asset portfolio.
d)
Multiple channels, viz., branch and alternate channels are used for dispensing Retail Credit.
2.
Which of the following is not an important criteria for assessment in Retail Credit
a)
Repayment capacity of the borrower
b)
The current verifiable income of the borrower (except educational loan)
c)
Availability of required margin (except in respect of Personal Loans), etc.
d)
Third party guarantee good for the loan amount
3.
Which one of the below mentioned entities is not a Credit Information Company
a)
Credit Information Bureau Limited (CIBIL)
b)
Equifax Credit Information Services Pvt Ltd (ECISPL)
c)
Experian Credit Information Company of India Ltd (ECICIPL)
d)
Highland Intelligent Credit Information Ltd (HICIL)
4.
Which one of the following is not an advantage of Retail Credit
a)
Retail credit yields in better yield and profitability for banks.
b)
Retail credit increases the subsidiary business of banks
c)
Requirements of monitoring and follow up of huge volume of loan accounts have resulted in banks spending heavily on human resources.
d)
Incidence of NPA in Retail Credit is found to be lower as compared to other loans.
5.
Which among the following is a characteristic of Retail Credit.
a)
High value & low volume loans
b)
Concentration risk is very high in case of Retail Credit
c)
Provides an opportunity to banks to diversify their asset portfolio.
d)
NPA percentage is very high in Retail Credit
6.
If multiple deviations/concessions are required in one proposal, all such deviations/ sanctions will be approved by
a)
By the respective authorities who are empowered to approve the individual deviations.
b)
If a proposal contains multiple deviations, such proposals cannot be entertained
c)
A proposal can have a maximum of two deviations and AGM of the Region/RACPC/RASMEC can approve the deviations
d)
All such deviations/ sanctions will be approved by the highest authority
7.
Identify in which case we do not need to obtain two Title Investigation Report from Two different empanelled Advocates?
a)
Properties offered by third party guarantors whether individual or non-individual
b)
Properties sold by Power of Attorney holders to our borrower/guarantor
c)
In respect of Housing Loans where the RERA registration is available and Loan amount is above Rs.5 crores
d)
Second Sales and Loan amount is Rs.5 crore and above
8.
Which of the following statements is incorrect with regards to collection of Title Deed by mortgagor after closure of loan as per SOP on Title Deeds?
a)
A letter would be sent to all the borrowers/guarantors, who had mortgaged their properties with the Bank, stating that the borrower/guarantor has to collect the original title deeds within 60 days of full and final payment of Bank’s dues (Loan).
b)
In case they do not collect the original title deeds within the prescribed time limit, applicable Safe Custody Charges would be levied.
c)
Waiver of Safe Custody Charges in respect of Title Deeds shall be vested with the Branch Managers not below Scale-IV incumbency / AGM (Controller) on a case to case basis.
d)
Mortgagor can collect the Title Deeds at any time after closure of the loan as the Bank is bound to return the documents without any charges
9.
Which of the following statements is incorrect regarding scoring model in Retail Segment?
a)
Facilitate business growth by enhanced efficiencies in the appraisal and sanction process.
b)
Increase of Turnaround Time (TAT)
c)
Price the borrower for a given product based on credit scores
d)
Evaluate quality of assets in the Bank’s portfolio
10.
In which of the following schemes, scoring model will not be used for decision making but will be applied only for determining regulatory capital requirements under Basel II
a)
Home Loan as it is fully secured by the value of primary security
b)
Auto Loans to reach to number one position in the industry, Bank has taken a calculated risk
c)
X Press Credit Loans because of competition involved and to fully tap the potential available
d)
Education Loan, loan applications conforming to the terms of the loan scheme cannot be declined based on cut off scores
11.
Satisfactory Title Investigation Report (TIR) from two empanelled advocates need not be obtained in which case
a)
Properties offered by third party guarantor whether individual or non individual.
b)
Properties acquired through Gift Deed
c)
Property sold by Housing Development Board
d)
Properties sold by Power of Attorney Holders to our borrower/guarantor.
12.
The Credit Information Companies (Regulation) Act, 2005 mandates Credit Insitutions to ensure resolution of any dispute raised by a consumer within how many days
a)
30 days
b)
15 days
c)
21 days
d)
45 days
13.
In Retail Scoring, proposals are given 10 grades from 1 to 10 and classified into three categories . Which is Not a correct category?
a)
Clear sanction
b)
Indeterminate category
c)
Decline
d)
Referred
14.
How do we calculate Other Income for arriving total income of Customer while arriving at eligible loan amount?
a)
Regular income from all sources including performance/ production linked incentives; bonus, overtime etc. can be considered, in whole or in part, on the basis of the average of the last two years
b)
Income like performance/ production linked incentives; bonus, overtime etc. cannot be considered
c)
Regular income from all sources including performance/ production linked incentives; bonus, overtime etc. can be considered, in whole or in part, on the basis of considering the lowest income of the last two years.
d)
Considering income from other sources is left to the sole discretion of the sanctioning authority
15.
Detailed chain of title for the scheduled property for loans amounts of Rs 1 Cr and above, from empanelled advocate be obtained for a period of ..... years .
a)
30
b)
15
c)
13
d)
8
16.
Norms regarding obtention of certified copies of Title Deeds directly from the office of the Sub-registrar is waived for Home loans up to Rs..........Lacs
a)
50
b)
100
c)
30
d)
75
17.
Collection of cheque / cash for stamp charges from prospective borrower has to be done by
a)
Sourcing officials along with application and other supporting documents
b)
Processing official at the time processing the proposal in LOS
c)
Documentation Officer will collect the cheque/cash from the customer at the time of documentation
d)
Disbursement Officer will collect the cheque/cash from the customer at the time of first disbursement
18.
Which of the following is correct as regards computation of Net Annual Income?
a)
NAI means annual income net of all statutory and compulsory deductions like income tax, Employees Provident Fund etc. during any financial year
b)
NAI means annual income net of all statutory and compulsory deductions like income tax, Employees Provident Fund etc., and EMIs on existing loans during any financial year
c)
Income shown by the applicant which is of temporary nature or where consistency is not there can be considered as income as it is refleced in the salary slip
d)
It is the left to the discretion of the processing officer to include / exclude items of deduction appearing in the salary slip.
19.
The scoring models have been developed on Bank’s behalf based on historical data over the last few years by
a)
CRISIL
b)
ICRA
c)
Experian
d)
Highmarks
20.
What are the categories in which proposals are categorised in Retail Scoring Model
a)
Clear Sanction, Indeterminate Category and Decline
b)
Clear Sanction, Intermediate Category and Decline
c)
Conditional Sanction, Intermediate Category and Referral
d)
Clear Sanction, Indeterminate Category and Return
21.
“DPD” in relation to CIBIL report stands for
a)
Days Past Due
b)
Due Professional Diligence
c)
Due Personal Diligence
d)
Days of Probable Default
22.
The scores in CIBIL Transunion range from
a)
400 - 900
b)
300 – 900
c)
500 – 1000
d)
300 – 1000
23.
The maximum score that can appear in CIBIL TransUnion report is……..
a)
700
b)
800
c)
900
d)
1000
24.
The CIBIL Report of a Car Loan applicant shows a business loan account as settled. The application should be
a)
Sent to controllers for seeking deviation if it is otherwise in order
b)
Rejected
c)
Accepted and processed in a usual manner
d)
Accepted if only one such instance is there in the CIBIL Report
25.
Which of the following statements is incorrect in respect of takeover of retail loans?
a)
Take-over of P-Segment Loans is permitted in respect of Housing Loans, Car Loans and Collateralized Education Loans.
b)
Before take-over of advances proper due diligence about the borrower, guarantor and the seller to be done.
c)
Take over of home loan can be done from Scheduled Comercial Banks including Pvt & Foreign Banks, HFCs etc.
d)
Take -over of P-Segment Loans is permitted in respect of Housing Loans, Car Loans and all Education Loans.
26.
If a Branch /CPC is utilizing the services of External Verification Agencies, they will verify ------ of the cases handled by the outside agency, as a cross-check of the quality of their services.
a)
0.02
b)
0.05
c)
0.1
d)
0.25
27.
When TIR is to be obtained from two different Advocates and there is divergence in opinion of both the Advocates in TIR, regarding mortgage of a property , matter has to be referred to ---------------------------------------------as the case may be and the Branch/CPC must act accordingly as per their guidance before creation of mortgage.
a)
The Regional Manager/ AGM of CPC
b)
RCC/ ZCC
c)
The law officer / in house legal team at AO/HO
d)
CCC-II
28.
Which of the following activities cannot be outsourced by RACPC?
a)
Conducting Residence Address Verification by actually visiting the applicant’s residence
b)
Conducting Business/Office Address Verification by actually visiting the applicant’s place of business/office
c)
Preparation of opinion report on the borrower/Guarantor
d)
Conducting Business/Office Phone Verification by making a phone call to the applicant’s place of business/office.
29.
All operating units are required to verify description of the property together with boundaries of the same on north, south, east and west directions as mentioned in which of the following documents?
a)
Title Deeds at the time of pre-sanction survey
b)
Legal Report at the time of disbursement
c)
Valuation Report after disbursement
d)
None of these
30.
While calculating Net Monthly Income, regular income from all sources including performance/ production linked incentives; bonus, overtime etc. can be considered, in whole or in part, on the basis of the average of the last-------- years, to arrive at the total eligible loan amount.
a)
Three
b)
Four
c)
Two
d)
Five
31.
For Release of Title Deeds: A letter, would be sent to all the borrowers/guarantors, who had mortgaged their properties with the Bank, stating that the borrower/guarantor has to collect the original title deeds within ----------- days of full and final payment of Bank’s dues (Loan).
a)
15 days
b)
30 days
c)
90 days
d)
60 days
32.
Which of the following statements is most appropriate in respect of SBICAP Securities Ltd. (SSL)
a)
They are our Corporate Agent for marketing of our Home Loans only
b)
They are our Corporate Agent for marketing our Home Loan and other RE Products only
c)
They are our Corporate Agent marketing Home Loan , other RE Products and auto loans
d)
All loans sourced by SSL can be parked in any branch as per the preference of the Bank.
33.
Sourcing entity can obtain certain deviations. Which among the following deviation can not be obtained by sourcing entity?
a)
Concessions in rate of interest
b)
Process level deviations
c)
Reduction in margin
d)
Increase in EMI/NMI ratio
34.
Under Universal Distribution Network. Bank has tied up with which of these companies for marketing of our Auto Loan and related products.
a)
SBICAPS Securities Ltd. (SSL)
b)
SBI Mutual Funds (SBIMF)
c)
SBI Life Insurance Co. Ltd.
d)
SBI General
35.
Which one of the followign is not an Internal Sourcing Entity?
a)
MPST (Multi Product Sales Team)
b)
Auto Loan Counsellors-ALC
c)
Home Loan Sales Team-HLST
d)
Branch Support Team-BST
36.
Which one of the followign is not an External Sourcing Entity?
a)
Home Loan Counsellors
b)
Education Loan Counsellors
c)
Marketing Associates
d)
Builder Relation Team
37.
Tie-ups with reputed builders enable us to book Home Loan business from borrowers with a relatively low risk profile. Which among the following statement is incorrect as regards the eligibility criterion for a builder to be considered for a tie-up?
a)
Builders, who have been in the line of activity for a minimum period of 3 years
b)
Builders affiliated to the industry body i.e. State Chamber of Housing Industry/CREDAI
c)
Builders enjoying the ISO Certification
d)
The key promoters should be reputed and experienced in the line of activity.
38.
With respect to Builder Tie-Up,the Project under consideration should fulfill some of the criteria . Which among the following is not a criterion for the same?
a)
Project completion period should not normally exceed 36 months
b)
The Builder’s adherence to the Project completion schedule should be satisfied on the basis of promoters’ track record in timely completion of their last three completed Projects
c)
Track record of the Builder in conveyance of a valid Title in favour of the buyers should be ascertained on the basis of the latest two completed Projects.
d)
Project should contain at least 40 flats with 50% share being given to our Bank.
39.
The Bank has entered into tie-up arrangement with .......... as our Corporate Agent for marketing of our Home Loans .
a)
SBI general insurance
b)
SBICAP Securities Ltd. (SSL)
c)
Motilal Oswal
d)
ICICI direct
40.
Shri Virendra has joined as Home Loan Sales Team member in our Bank. Which one of these is not a part of his role?
a)
Generating outbound leads through own network, campaigns, events etc.
b)
Visiting mapped builder sites on regular basis
c)
Ensuring all documents as per defined checklist have been received
d)
Visiting Auto Dealers on regular basis to source lead and share brochures.
41.
Shri Pramod is a reputed builder with whom we have tie up arrangement. Shri Pramod has been engaged as our External Sourcing Entity and he would work in capacity of
a)
Home Loan Counsellor
b)
Education Loan Counsellor
c)
Marketing Associate
d)
Auto Loan Counsellor
42.
Pre Sanction Survey and KYC of customer cannot be waived in which of the following case
a)
If the address of customer has not changed and he is a Home/ Personal Loan Customer with minimum one year's satisfactory track record.
b)
If the address of customer has not changed and he is a Car Loan Csutomer with satisfactory track record and wants to avail another car loan..
c)
If the address of customer has not changed and Customer is having satisfactory deposit account with average balance of Rs 50000/- and above and banking with us for at least one year.
d)
If the address of Customer has changed and he has submitted fresh address proof.
43.
To get Title Investigation Report, the original title deeds of the property should be handed over to the Advocate by the ............
a)
Borrower
b)
Borrower or guarantor
c)
Home Loan Counsellor
d)
Branches or CPCs directly
44.
Shri Ram is an existing customer whose address has not been changed. In which of the mentioned cases, we will conduct Pre-sanction survey and KYC for Shri Ram if he is a
a)
Home/Personal Loan customer with minimum one year’s satisfactory track record
b)
A car loan customer with a satisfactory track record, who wants to avail another car loan
c)
Customer having satisfactory deposit account with average balance of Rs.50,000/- & above and banking with us for at least one year
d)
A Home Loan customer with a one year satisfactory track record and wants to avail another housing loan for acquiring a new house.
45.
Mr. Sampad wants to have a home loan. While scrutinizing his CIBIL Report, you have noticed that a vehicle loan is appearing in his report with written off status. The write off amount is Rs.16500.00. What action should you take?
a)
Sanction the loan as the written off amount is small.
b)
Sanction the loan as written off status does not require any deviation approval.
c)
Sanction the loan after obtaining deviation approval from Regional Manager.
d)
Sanction the loan after obtaining deviation approval from DGM (B&O).
46.
Mr Krish is an existing customer of your Branch. He wants to take a home loan from you. While going through his CIBIL report you have found out that there is a settled Credit Card in his name which has happened in the year 2010. Upon enquiry he says that there was a dispute between him and the credit card company on some charges levied and finally he had settled it. Can you go ahead and sanction the loan?
a)
Yes, but you need deviation from GM Network
b)
Yes, but you need deviation from DGM (B&O)
c)
Yes, provided you get a deviation approval from your Regional Manager
d)
Yes, as the incidence is more than 5 years old, it may be ignored.
47.
In Sashi's CIBIL report there are DPDs (Days past Due) appearing in the repayment history of his car loan as well as there is some overdue. His car loan is from one NBFC and he has been very regular in his repayment. Sashi is an existing customer of your Branch and wants help from you. How can you help him?
a)
You can not help in this matter as the loan is with other Bank.
b)
You can send an email to CIBIL stating the case history and asking for help.
c)
You can advise Sashi to raise a dispute with CIBIL through the menu available on CIBIL Home Page (website).
d)
You can send the account statement of Sashi showing the ECS deduction data to CIBIL for rectification of data.
48.
Ms Amrita RMPB was visiting a construction site for pre sanction inspection of Home Loan. While tallying the boundaries as mentioned in title deeds, she found some difference in the physical property.
a)
Minor difference in the boundaries of property may be ignored and the loan may be processed
b)
If area of actual property is more than what is actually mentioned in Title Deed, then we can process the loan
c)
Boundaries of the proposed property as mentioned in Title Deeds should tally with the actual boundaries of the property. We will not process the loan.
d)
If Ms Amrita is satisfied regarding ownership and valuation of property, then differences in property may be ignored. We will process the loan
49.
Shri Rohit has received valuation report of a property on which home loan was to be sanctioned. Market value as stated by valuer was Rs 75.00 lacs and Realizable value was Rs 65.00 lacs. The area of the property was 3,500 sq feet and was located in posh locality. While independently enquiring about the property, Shri Rohit found that market value of the property will be approx Rs 50.00 lacs only.
a)
Shri Rohit will take valuation as given by Valuer as Valuer is the competent person to arrive at market value.
b)
Shri Rohit will take value of property as Rs 50.00 lacs and arrive at eligibility of customer after making notes in the proposal.
c)
Shri Rohit will take average of Rs 75.00 lacs and Rs 50.00 lacs to arrive at value of the property
d)
Shri Rohit will take average of Rs 65.00 lacs and Rs 50.00 lacs to arrive at value of the property.
50.
Shri Siddharth has gone for presanction inspection of a Home Loan applied by Ms Manu. The property has been converted from agriculture use to residential use and is an open stretch of land. Ms Manu told Shr Siddharth "From the Mango tree on left to Banana tree on right, then from Neem tree in north to the point where we are standing - these are boundaries of the property.
a)
Shri Siddharth will go for processing of loan as he has verified the property
b)
Shri Siddharth will ask for clear demarcation of property as boundaries are not clear.
c)
If the boundaries as told by Ms Manu are confirmed by her father, we can process the loan.
d)
Shri Siddharth will take a photograph of property and process the loan.
51.
Ms Sneh has been posted in CIT at one of local RACPC. She would be part of
a)
Central Investigation Team
b)
Central Inspection Team
c)
CIBIL in Transunion
d)
Central Insurance Team
52.
Sheri Ram, Field officer of branch has to go for Pre sanction visit to a prospective Home Loan customer. While starting from branch he observed that customer was waiting for him in a car. Shri Ram readily agrees as it was a hot summer day and accompanies customer for visit. State which aspect of pre sanction process has not been adhered by Shri Ram?
a)
Pre sanction visit may be done with customer for easy location of property/residence/ business place.
b)
Pre sanction visit should be independently conducted and there should be an element of surprise.
c)
Pre sanction visit may be done as per customer's convenience and availability
d)
Pre sanction visit should only be arranged after proper notice has been given to the borrower.
53.
Pre Sanction Survey and KYC of customer can be waived in which of the following case
a)
If the address of customer has changed and he is a Home/ Personal Loan Customer with minimum one year's satisfactory track record.
b)
If the address of customer has not changed and he is a Car Loan Cutomer with satisfactory track record and wants to avail another car loan..
c)
If the address of customer has not changed and Customer is having satisfactory deposit account with average balance of Rs 1000/- and above and banking with us for at least one year.
d)
If the address of Customer has changed and he has submitted fresh address proof.
54.
As per the Retail Scoring Model of Home Loan, the risk grade of a customer is 2. What type of customer is he?
a)
High Risk
b)
Low Risk
c)
Medium Risk
d)
Indeterminate Risk
55.
PDOC in LOS refers to
a)
Pre Sanction Documents
b)
Post Sanction Documents
c)
Personal Documents
d)
Pre Closure Documents
56.
Deduplication is done in LOS as a precautionary measure and to improve the quality of data . Deduplication is run.....
a)
By processing officer as part of processing the proposal before submitting it for underwriting
b)
By sanctioning officer before underwriting the proposal
c)
By Sourcing entity who will make quick data entry (QDE) and run deduplication, before submitting the application to the processing centre
d)
Deduplication need not be run in all cases, can be run only in doubtful cases
57.
We have to file charge in CERSAI site in respect of equitable mortgage created by us within ___ days of creation of mortgage.
a)
7 days
b)
14 days
c)
21 days
d)
30 days
58.
For entering details of the property in CERSAI portal, functionality has been developed in which stage of LOS
a)
Quick Data Entry (QDE)
b)
Detailed Data Entry (DDE)
c)
Underwriting (UND)
d)
To be done on CERSAI portal only
59.
You are posted in Park Street Branch Kolkata as RMPB. Mr Ravi who is buying a flat at DLF Project, Kolkata is working in Pune and has sumbitted his Home loan application at your Branch. The loan has been sanctioned by RACPC Kolkata but Mr Ravi is not able to come for documentation due to work pressure. How can you help him?
a)
You can ask the customer to execute a Power of Attorney in favour of any of his close relatives and his attorney can come to Kolkata and execute the documents
b)
You can send the documents to Pune RACPC for documentation
c)
You can't do anything in this regard but to wait for the customer to come to Kolkata for documentation.
d)
You can ask Kolkata RACPC to cancel loan in LOS and reenter when he comes to Kolkata
60.
Shri Ranjit, Branch Manager has received a disbursement request for the 2nd installment of a home loan from Shri Ajit. Shri Ranjit has visited construction site of Shri Ajit once at the time of pre sanction visit and another at the time of first disbursement.
a)
Shri Ranjit can disburse the second installment without conducting inspection of the site to verify actual stage of construction.
b)
Disbursement will be made only after inspection is done by Shri Ranjit and construction stage is verified with completion certificate given by Shri Ajit
c)
Inspection will be done only at final disbursement.
d)
Inspection need not be done if Shri Atul shows photograph of construction site.
61.
During one of his visit at branch, Regional Manager Prakash was looking at loan documents. He advised Field Officer to take precaution and follow the procedure which is mentioned as per Section 12 of Stamp Act. The particular section deals with
a)
Cancellation of Stamps
b)
Taking requisite amount of stamp in connection with documents
c)
Proper execution of loan documents
d)
Initialing at documents
62.
Who is the empowered authority to take a decision on repossession of vehicle in case of action under Loan Agreement?
a)
Authorised officer not below the rank of CM
b)
AGM of the Region
c)
The authority empowered to sanction the loan
d)
DGM (B&O) of the module
63.
Which of the following statements is incorrect as regards transfer of NPAs from Branch / RACPC to SARG?
a)
NPAs should be migrated to SARG only after soft recovery measures viz. telephone calls, SMS, Ordinary notice, personal contact, registered demand notice, legal notice, have been exhausted by the operating units.
b)
NPAs should be migrated to SARG only for hard recovery measures viz. action under SARFAESI, filing of suits, compromise settlement, sale to ARC, declaring borrower as wilful defaulter etc.
c)
NPAs should be migrated to SARG immediately, but in any case within a maximum period of 180 days from the date of NPA with the approval of the Controllers of the Branches.
d)
Advances related fraud cases can be migrated to SARG after registration of FIR with State Police/CBI and the work related to fraud would to be handled by the SARG, since all documentary evidence is with SARG after migration.
64.
You are the Branch Manager of MMGS-II Branch. Competent Authorities have approved filing of civil suit and transfering the outstanding to Recalled Assets Account, however empanelled Advocate requests you to permit him to file the case in Civil Court after 5 months as he is going abroad for some personal work. Which course of action will you take?
a)
Considering the competency of Advocate, the request to be accepted and case can be filed after 5 months.
b)
Civil suit is to be filed immediately on approval but in any case within a maximum period of 1 monlth form the date of approval of competent authorities.
c)
Civil suit is to be filed immediately on approval but in any case within a maximum period of 2 monlths form the date of approval of competent authorities.
d)
Civil suit is to be filed immediately on approval but in any case within a maximum period of 3 monlths form the date of approval of competent authorities.
65.
As a Credit Officer what important precaution you will ensure before filing of Original Application in DRT?
a)
Service of call up notice: Call up notice is to be served on the Borrower/Guarantor through Bank’s
empanelled Advocate demanding payment of the Bank’s dues within 30 days.
b)
Demand Notice for payment within 7 days before filing of Original Application in DRT
c)
Initiation and completion of acton under SARFAESI
d)
All of the above.
66.
As a Credit Officer what should be your demand during the first hearing in DRT, through your empanelled Advocate?
a)
Argue for immedite judgement preferably within 30 days.
b)
Argue for immediate payment of 75% of the dues from the Borrower.
c)
Argue for immediate initiation of action under SARFAESI.
d)
Argue for granting the
Interim Relief (s) prayed for and obtain the same.
67.
Your Credit Officer has come to you for doubt clarification. He wants to know what is the amount to be deposited by the Borrower with the Appellate Tribunal when Borrower has decided to file an Appeal with DRAT?
a)
50% of the amount of debt due as determined by the DRT so that the Appeal is entertained by the Appellate Tribunal (DRAT). But the Appellate Tribunal (DRAT) may waive or reduce the amount to be deposited with the reasons recorded in writing for such waive
b)
51% of the amount of debt due as determined by the DRT so that the Appeal is entertained by the Appellate Tribunal. But the Appellate Tribunal may waive or reduce the amount to be deposited with the reasons recorded in writing for such waiver or reduction
c)
71% of the amount of debt due as determined by the DRT so that the Appeal is entertained by the Appellate Tribunal . But the Appellate Tribunal may waive or reduce the amount to be deposited with the reasons recorded in writing for such waiver or reducti
d)
75% of the amount of debt due as determined by the DRT so that the Appeal is entertained by the Appellate Tribunal (DRAT). But the Appellate Tribunal (DRAT) may waive or reduce the amount to be deposited with the reasons recorded in writing for such waive
68.
Your Junior Level Field Officer is requesting you to guide him / her on whether an opportunity may be given to the borrower to take back the vehicle once the loan has been recalled and repossession process has been initiated?
a)
Any time after repossession but before concluding the sale transaction, provided the Bank dues are cleared in full.
b)
After repossession but before sale transaction with the permission of Sanctioning Authority.
c)
Any time after repossession but before concluding the sale transaction, provided the Bank dues are cleared in full or a compromise settlement has been reached between the borrower and the Bank.
d)
Since default is there on the part of the borrower, car / vehicle cannot be given to the borrower.
69.
What are the actions required before issuing Notice under Section 13 (2) under section 13(2) of SARFAESI Act, 2002?
a)
Accounts should have been identified as NPA for SARFAESI action and the loan documents
including EM documents pertaining to securities held should be legally
enforceable and within the period of limitation.
b)
Assets charged to the bank should be inspected and identified.
c)
Approval for issuing notice under section 13(2) of SARFAESI Act, 2002 to be obtained from the Competent Authority depending upon the amount of total dues involved.
d)
All of the above.
70.
Your Field Officer is in a confused state of mind regarding type of recovery measusres whether Soft or Hard Recovery Measure to be intitated by a Branch when loan account beocmes NPA. Which of the following is a hard recovcery measure?
a. Reminders
b. Telecalling c. Compromise d. SARFAESI
a)
only a
b)
only b
c)
only c
d)
only d
71.
A Centralised Loan Collection System (LCS) has been introduced by our Bank to automate the process of following up of delinquent customers for collection and recovery of due amount in ………. segment loans.
a)
P segment
b)
SME Segment
c)
P & SME Segments
d)
Corporate
72.
Through Centralised Loan Collection System (LCS), follow-up can be made for …………types of accounts.
a)
Only live accounts in our books
b)
Live accounts and accounts written off but not parked in AUCA
c)
Live accounts, written off accounts and AUCA accounts
d)
Only written off accounts and AUCA accounts
73.
Which one of the following is not an advantage of Loan Collection System (LCS)?
a)
New LCS helps in tracking and management of delinquent cases filed for legal action and sale/ disposal of repossessed assets.
b)
Automatically pulls latest communication details of the borrowers from credit bureaus.
c)
A Document Management System (DMS) provides facility to upload, download, store and archive various documents
d)
Provides Trust Score of the borrowers based on repayment history.
74.
As per RBI Classification SMA-0 is a category where……..
a)
Principal or interest payment not overdue for more than 7 days but account showing signs of incipient stress
b)
Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress
c)
Principal or interest payment not overdue for more than 60 days but account showing signs of incipient stress
d)
Principal or interest payment not overdue for more than 90 days but account showing signs of incipient stress
75.
As per the Standard Operating Procedure on Settlement of Bank's Dues through Compromise, an initial deposit of at least ……% of offer amount is obtained from the Borrower as an evidence of his intention to pursue the compromise settlement with the Bank.
a)
5
b)
10
c)
15
d)
20
76.
As per RBI Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, an asset account that is guaranteed by Central Government will be treated as NPA if:
a)
the account remains overdue for more than 90 days
b)
the account remains overdue for more than 180 days
c)
Central Government repudiates its guarantee when invoked
d)
Central Government makes payment of the guaranted amount after 90 days
77.
Compromise Process will be initiated ……… the Bank has exercised its right to set off or lien against any deposits of the borrower/guarantor lying with the Bank.
a)
Before
b)
After
c)
Before or after, depending on the case
d)
at the exact time when
78.
In case of Compromise Settlement, the …………………... of security charged to the Bank as also the Bank’s ability to sell the security will be the basic factors which would decide the compromise amount.
a)
Market Value
b)
Realisable Value
c)
Distressed Value
d)
Govt Guidance Value
79.
In case ofCompromise Settlement for arriving at the compromise amount for cases where the value of security is Rs. 1 cr and above , two valuation reports from Bank’s approved valuers have to be obtained and the ........... value has to be taken into account for deciding the compromise amount
a)
Higher
b)
Lower
c)
Average
d)
Geometric Mean
80.
An award made by the Lok Adalat is deemed to be a decree of a …………. court and is final and binding on all parties.
a)
District
b)
High Court
c)
Civil
d)
Supreme
81.
In case of a loan that has been settled in Lok Adalat The compromise amount may be agreed to be paid in monthly/quarterly instalments or depending on the income generation of the defendant. However, such repayments should be made within a period not exceeding a total period of ...... months.
a)
60
b)
36
c)
24
d)
12
82.
Which of the folowing is not correct with respect to seizure of vehicle based on terms of loan agreement?
a)
No Minimum amount
b)
No stipulation for minimum value of security
c)
Sanctioning authority of any Scale can act as Authorised Officer
d)
Police protection is available
83.
Which of the folowing is not correct with respect to seizure of vehicle on the basis of SARFAESIAct ?
a)
SARFAESI procedure may be initiated after account becomes NPA under extant IRAC norms
b)
Police protection is available at the time of seizure
c)
The amount due should not be less than 20% of principal plus interest
d)
The value of security should not be less than Rs. 2 lac
84.
The Branches are required to file Original Application for recovery of Bank’s dues before Debt Recovery Tribunal in cases where total debt due from the borrower is ……….. lac & above
a)
Rs. 10 lacs
b)
Rs. 15 lacs
c)
Rs.20 lacs
d)
Rs. 25 lacs
85.
An award made by the Lok Adalat is deemed to be a
a)
Decree of a civil court and is final and binding on all parties
b)
Decree of a criminal court and is final and binding on all parties
c)
Decree of a civil court and is final and binding on borrower only
d)
Decree of a civil court and is final and binding on bank only
86.
You are the Chief Manager of the RACPC in a Metro Centre, your Maintenance Officer requests to guide him regarding how many notices are required to be sent to the borrower (Other than Guarantor) before effecting the sale of the Car?
a)
4
b)
5
c)
6
d)
7
87.
Newly reported Credit Officer of your Branch asks you as to whether action under Sec. 13(2) of the SARFAESI Act, can be initiated in respect of the borrowers' whose cases have been pending with DRT/Civil Court?
a)
Yes
b)
No
c)
Yes, after obtaining the permission from DRAT Authority.
d)
Yes after obtaining the permission of Controlling Authority.
88.
Which of the following statements is most appropriate in respect of NPA Management?
a)
Poor processing is the prime cause of accounts becoming NPAs.
b)
The seed of NPA is sown in improper Sourcing of proposals
c)
Not following up RG-3 accounts is the prime cause of accounts becoming NPAs.
d)
Not following up RG43 accounts is the prime cause of accounts becoming NPAs.
89.
Monetary ceiling of cases in Lok Adalats to be organised by DRTs/DRATs
a)
Below Rs 1 Cr
b)
Above Rs 1 Cr
c)
Irrespective of the amounts involved in the cases
d)
Branches cannot participate in Lok Adalats organised by DRT/ DRATs
90.
Is presence of Bank official required during repossession of vehicle?
a)
Required in SARFAESI based action
b)
Required in TL Agreement based action
c)
Required in all cases of repossession?
d)
Not required
91.
In case of seizure of Cars / Vehicles under Auto Loan Scheme, what is the trigger point for seizure?
a)
Said Car Loan account becoming NPA
b)
Dishonour of two cheques/ECS or non-payment of two consecutive instalments.
c)
Account has been categorized as Doubtful Assets
d)
Three months from the date of NPA
92.
Authorised Officer has the authority to initiate action under the SARFAESI Act
and issue notices as per the Security Interest (Enforcement) Rules? Here who is referred to as Authorised Officer? (Choose the most correct option.)
a)
Chief Manager of a Public Sector Bank
b)
Officer of SMGS-IV
c)
Authorised officer means an officer not less than
a Chief Manager of a public sector bank or equivalent.
d)
Officers posted at Administrative Offices, are
Authorised officer for any of the branches under the control of the
Administrative Office, as decided by the Controller of the Branch.
93.
As per RBI Classification SMA-2 is a category where……..
a)
Principal or interest payment overdue between 61-90 days
b)
Principal or interest payment overdue between 31-60 days
c)
Principal or interest payment overdue between 0-30 days
d)
Principal or interest payment overdue between 7-30 days
94.
Which of the options is not considered as early warning signal for stressed asset management?
a)
failure of SIs / ECS
b)
bouncing of cheques
c)
Death of the borrower or key member of the family
d)
Opening savings account in another Bank
95.
Which one of the following is not a Soft Recovery Measure available to the Bank to recover Bank dues?
a)
Filing a suit at DRT
b)
Compromise Settlement
c)
RBI OTS
d)
Lok Adalat
96.
In case of settlement of Bank's Dues through Compromise Offer, in normal circumstances, which of the following amounts will always be the least?
a)
Total Dues payable by the borrower
b)
Compromise Offer made by the borrower
c)
Sacrifice of interest amount by the Bank
d)
All of the above
97.
Can a Branch consider the Compromise Offer given by the Willful Defaulter? (Select most correct answer)
a)
Yes
b)
No
c)
Yes, subject to Administrative Clearance from Competent Authorities
d)
No, as RBI has prohibited the Banks from accepting the Compromise Offers from Willful Defaulters.
98.
Which of the folloiwng is the benefit of settling Bank's dues under Compromise Offer? (Select most suitable answer)
a)
Recycling of funds to the Bank
b)
Economic Development of the nation
c)
Eco-socio development of the nation
d)
Incentive to the Branch Officials for recovery in NPA accounts.
99.
Copy of stipulated terms and conditons letter covering sanction of Compromise Offer is required to be conveyed to ………….
a)
Borrower(s)
b)
Guarantor(s) if any
c)
Corporate Guarantor if any
d)
All of the above
100.
Lok Adalat is a forum where ................. accounts / cases / disputes can be referred to and settled amicably.
a)
Cases pending in the court of law or at pre-litigation stage or likely to be filed with different Civil Court / DRT etc.
b)
Decreed only
c)
Cases pending at DRT only
d)
Only Cases where SARFAESI action has been initiated.
101.
Branches can participate in Lok Adalats to be organised by DRTs/DRATs involving an amount up to Rs…………………….
a)
Rs.20 lacs
b)
Rs.50 lacs
c)
Rs.100 lacs
d)
Without any ceiling
102.
Compromise settlement from a fraudulent borrower will be allowed only with the condition that .........................................................
a)
Criminal complaint will be continued even after settlement of compromise
case.
b)
Criminal Complaint will also be settled after full and final payment of entire dues.
c)
Criminal Complaint will be withdrawn upon closure of the loan account.
d)
None of the above
103.
The valuation report should be less than ……………months/ year old for sale of properties for initiating / considering under Private Treaty/SARFAESI Act 2002 and Settlement of dues through compromise.
a)
3 months
b)
6 months
c)
1 year
d)
3 years
104.
The second valuation report should be obtained only if the……………………….is Rs 1.00 crore and above in case of compromise settlement & fixation of Reserve Price under SARFAESI Act 2002.
a)
Loan outstanding in books
b)
Total liability of the borrower
c)
Total exposure of the borrower
d)
Value of Property
105.
Application for Compromise Settlement given by the NPA borrower should ideally contain………….
a)
Name and address of the borrower
b)
Purpose and amount of original loan sanctioned by the Bank.
c)
Details of outstanding viz. Outstanding of Principal and interest thereon.
d)
Amount of compromise offer and payment schedule of the offer.
106.
You are Senior Officer heading Credit Portfolio of the Branch. Your junior Credit Officers asks you as who should check / verify the facts contained in the draft plaint and legal aspects contained in the plaint?
a)
Both the contents are to be checked by Senior Credit Officer of the Branch to avoid delay in filing of case.
b)
Facts / credIt history contained in the draft plaint are to be verified by the Branch official and legal aspects to be verified by the Bank's Law Officer.
c)
All the facts inlcuding legal aspects to be checked by the Empanneled Law Officer of the Branch to whom the case is being given for filing of suit.
d)
Facts contained in the draft plaint are to be verified by the Law Officer and legal aspects to be verified by the Bank's Empanneled Advocate.
107.
Your newly reported Field Officer is seeking your guidance on what is the criteria of minimum amount of loan outstanding for initiating action for seizure of vehicleson the basis of zzterm Loan Agreement?
a)
No Minimum amount
b)
The amount of loan outstanding and due should not be less than 50% of principal plus interest.
c)
The amount of loan outstanding and due should not be less than 20% of principal plus interest.
d)
Minimum of Rs.1,00,000/-
108.
Your Branch Manager has engaged the services of investigative agencies to obtain the latest statement of assets & liabilities of borrowers/guarantors and also to obtain a list of unencumbered assets of a borrower who has approached your Branch for compromise settlement. This act of BM is................
a)
Permitted as per the extant instructions of the Bank with regard to the process of compromise settlement
b)
Not permitted as per the extant instructions of the Bank with regard to the process of compromise settlement
c)
Permitted as per the extant instructions of the Bank with regard to the process of compromise settlement if prior permission from the Controller has been obtained.
d)
Permitted as per the extant instructions of the Bank with regard to the process of compromise settlement if prior permission from the General Manager, Network has been obtained.
109.
You have finalised a Compromise Settlement proposal with a Borrower where the payments will be done on installment basis. Normally what percentage of approved settlement amount will you ask the customer to pay upfront in this case?
a)
at least 15% of the approved settlement amount (exclusive of initial deposit) would be payable upfront
b)
at least 20% of the approved settlement amount (inclusive of initial deposit) would be payable upfront
c)
at least 25% of the approved settlement amount (exclusive of initial deposit) would be payable upfront
d)
at least 15% of the approved settlement amount (inclusive of initial deposit 5%) would be payable upfront
110.
A customer of your Branch has approached you for compromise settlement of his loan account that has remained NPA for quite some time now and a case is pending before the court on account of this. Total outstanding and unpaid interest in the account comes to approx. Rs. 12 lacs.What is most suitable option available to you?
a)
File a fresh case in DRT
b)
Write-off the amount and declare the borrower a willful defaulter
c)
Settlement the account through Lok Adalat
d)
Go for securitisation of the loan
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