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WorksheetsPRIORITY SECTOR LENDING, MSME, INTEREST RATE FRAMEWORK
Total questions: 64
Worksheet time: 1hrs 4mins
Name
Class
Date
1.
Total Priority Sector advances should be ------ of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off Balance Sheet Exposure, whichever is higher.
a)
0.4
b)
0.45
c)
0.5
d)
0.55
2.
Total agricultural advances should be ------ of ANBC or credit equivalent amount of Off- Balance Sheet Exposure, whichever is higher.
a)
0.18
b)
0.2
c)
0.22
d)
0.24
3.
Export credit to eligible activities under agriculture and MSE will be reckoned
for ----------- lending under respective categories.
3. Export credit to eligible activities under agriculture and MSE will be reckoned
for ----------- lending under respective categories.
a)
Priority sector
b)
bank normal credit dispensation
c)
C& I
d)
SBF
4.
The current year’s targets for priority sectors and sub-targets will be computed based on the following
a)
Adjusted Net Bank Credit
b)
Bank’s Total capital
c)
Bank’s net worth
d)
Bank’s Gross Advances
5.
The targets for Micro Enterprises within the Micro and Small Enterprises segment (MSE) will be computed with reference to the outstanding credit to MSE as on preceding
a)
31st March
b)
1st April
c)
31st Decmeber
d)
25th December
6.
Description of the Micro & Small Enterprises Categories under Priority Sector has been done based on
a)
Loan amount
b)
Plant & Machinery
c)
Turnover
d)
Working capital
7.
What is th he limits for investment in plant and machinery/equipment for manufacturing enterprises to be classified as Micro Enterprises
a)
30.00 lakhs
b)
25.00 lakhs
c)
20.00 lakhs
d)
50.00 lakhs
8.
What is th he limits for investment in plant and machinery/equipment for manufacturing Sector to be classified as Small Enterprises
a)
25.00 lakhs to 5.00 cr
b)
35.00 lakhs to 5.00cr
c)
40.00 lakhs to 5.00cr
d)
45.00 lakhs to 5.00cr
9.
9. What is th he limits for investment in plant and machinery/equipment for Service Sector to be classified as Microl Enterprises
a)
Rs. 20.00 lacs
b)
Rs. 10.00 lacs
c)
Rs. 15.00 lacs
d)
Rs. 25.00 lacs
10.
What is th he limits for investment in plant and machinery/equipment for Service Sector to be classified as Small Enterprises
a)
Rs. 15.00 laksh to 2.00 cr
b)
Rs. 10.00 lakhs to 2.00 cr
c)
Rs. 25.00 lakhs to 2.00 cr
d)
Rs. 25.00 lakhs to 5.00 cr
11.
11. The contingent liability accounts / off balance sheet item will not be treated as a part of priority sector target achievement even if it qualify the eligibility under priority sector:
a)
Can be considered
b)
can not be considered
c)
can be considered with the approval of SIDBI
d)
Can be considered with approval of controllers
12.
12. In the case of proposals from SC/ST under priority sector, rejection should be by which of the following authority
a)
By sanctioning authority
b)
By Regional Manager
c)
one step higher than sanctioning authority
d)
By Deputy General Manager
13.
14. In ------- the Government of India has enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act to classify Micro, small and medium enterprise
14. In ------- the Government of India has enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act to classify Micro, small and medium enterprise
a)
2006
b)
2007
c)
2008
d)
2005
e)
s
14.
15. Which act has modified the definition of Micro, Small and Medium enterprises engaged in manufacturing or production and providing or rendering of services
a)
RBI act
b)
Banking Regulation act
c)
Guideline by NABARD
d)
MSMED ACT-2006.
15.
1. All advances granted to units in the ---------, irrespective of their size of operations, location and amount of original investment in plant and machinery will be treated as Micro Enterprise and be covered under priority sector advances and will be eligible for consideration under the sub-target (60 per cent) of the micro enterprises segment within the MSE Sector.
a)
KVI sector
b)
Government sponsored scheme
c)
SSI
d)
Agricultural
16.
As per the government directives , the cost of which shall be excluded while calculating the investment in Plant and Machineries under priority Sector
a)
Installation of Plant and machineries
b)
cost of consumable stores
c)
both I & 2
d)
ONLY 2
17.
Power generation set and extra transformer installed by the enterprise as per
regulations of the State Electricity Board can be included while calculating the
investment in plant and Machineries
a)
Yes can be included
b)
can not be included
c)
25% of the cost can be included
d)
50% of the cost can be included
18.
Gas producers plants can be part of investment in plant and Machineries while calculating the investment in plant and Machineris
a)
NO
b)
YES
c)
25% of the cost can be included
d)
50% of the cost can be included
19.
With a view to providing better customer service and ensuring that all loan upto 25000/- to MSE /Small borrowers should be disposed off within------ days
a)
2 weeks
b)
5 weeks
c)
4 weeks
d)
3 weeks
20.
22. What is the time norms for disposal of the loan under MSME from Rs. 25,000/ to Rs. 5.00 lacs.
a)
2 weeks
b)
5 weeks
c)
4 weeks
d)
3 weeks
21.
As per RBI guidelines it is mandatory to acknowledge all application submitted
manually or online by MSME borrowers and to issue an acknowledgement to the
customer
a)
YES
b)
NO
c)
over phone we can confirm
d)
only if loan are rejected.
22.
24. What is the normal security margin for the loan upto Rs 25,000/- under MSME segement
a)
NIL
b)
0.05
c)
0.1
d)
0.2
23.
What is the normal security margin for the loan over Rs 25,000/ and upto Rs. 5.00 lacs under MSME segement
a)
0.15
b)
0.2
c)
0.25
d)
0.3
24.
26. What is the normal security margin for the loan above Rs. 5.00 lacs under MSME segement
a)
0.15
b)
0.2
c)
0.25
d)
0.3
25.
27. In respect of some special schemes such as Entrepreneur Scheme or Scheme for
Financing Women Entrepreneurs (Stree Shakti Yojana), concessions in margin
money have been permitted
a)
NO
b)
Discretion of Sanctioning authority
c)
Yes
d)
Only for uneducated women.
26.
28. Under MSME Where subsidy/ margin money assistance is available from Government and/or other agencies and is not less than ---- per cent of total requirements, it should serve as margin and no fresh margin would be asked for.
a)
0.1
b)
0.25
c)
0.15
d)
0.2
27.
What is collateral security for MSME loan Up to to Rs. 10.00 lakhs (including composite loan
a)
nil
b)
0.05
c)
0.1
d)
0.15
28.
30. All the eligible loans under MSME can be covered under
a)
CGTMSE
b)
CGTFSEL
c)
SBI life Rinn Raksha
d)
With any insurance company as per consent of the borrower
29.
The working capital limits of MSE units shall be assessed on the basis of
a)
Projected annual turnover
b)
Based on audited balance sheet
c)
As per ABF
d)
Traditional Method
30.
The stand-by line of credit may be issued to meet genuine contingency needs of exporters and MSE units if
a)
Borrower is CRA rated
b)
100% collateral
c)
cannot be issued
d)
minimum 75 % collateral is required.
31.
CGTMSE was set up by
a)
Government of India
b)
SIDBI
c)
IDBI
d)
Both 1 & 2
32.
The annual guarantee fee will be paid to CGTMSE for MSE unit by
a)
Bank
b)
Borrower
c)
Guarantor
d)
both bank and guarantor
33.
When can Application for guarantee cover be lodged with the CGTMSE for creditfacilities sanctioned in a particular calendar quarter
a)
at the end of the next calendar quarter
b)
No after the disbursement immediately
c)
Any time within that financial year
d)
After the sanction of loan
34.
In case an account covered under guarantee of CGTMSE is rescheduled, the trust(CGTMSE) has to be informed regarding the new terms and condition
a)
No
b)
it is optional
c)
Yes
d)
none of the above
35.
Under MSME Repayment period of term loans should not exceed the useful life of the machinery/equipment or --- years, whichever is shorter
a)
10 years
b)
8 years
c)
7 years
d)
5 years
36.
Annual Review/ renewal exercise should be carried out in respect of all working capital advances sanctioned to all small business units except in cases where
a)
Limit is below Rs. 10.00 lacs
b)
Borrower is unable to submit financials
c)
Repayment programme is stipulated
d)
Both 1 & 2
37.
Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy ----------- criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.
a)
Loan amount
b)
Investment in plant and machineries
c)
Location of unit
d)
Both 1 &2
38.
Which of the following can be classified under priority segment
a)
Agriculture
b)
MSME
c)
Export credit
d)
All of the above
39.
What are the categories of Agriculture under the priority sector lending
a)
Farm credit
b)
Agriculture
c)
Ancillary activities
d)
all of the above
40.
What is the loan limit for education loan under priority sector
a)
Rs. 25.00 lakhs
b)
Rs. 20.00 lakhs
c)
Rs. 15.00 lakhs
d)
Rs. 10.00 lakhs
41.
What is the loan limit for housing loan in metropolitan centres under priority sector
a)
Rs. 30.00 lakhs
b)
Rs. 35.00 lakhs
c)
Rs. 25.00 lakhs
d)
Rs. 30.00 lakhs
42.
44. What is the loan limit for housing loan in other centres under priority sector
a)
Rs. 20.00 lakhs
b)
Rs. 15.00 lakhs
c)
Rs. 25.00 lakhs
d)
Rs. 30.00 lakhs
43.
The rate of interest for loans under priority sectors is decided by
a)
Individual Bank
b)
RBI
c)
Government of India
d)
NABARD
44.
46. What is Priority Sector Lending Certificates(PSLCs)
a)
It is a mechanism to enable banks to achieve the priority sector lending targets.
b)
It is a certificate issue to Bank by RBI
c)
It is certificate which has to be issued by Bank to lead bank
d)
None of the above
45.
The current year’s targets for priority sectors and sub-targets will be computed based on the following
a)
Adjusted Net Bank Credit
b)
Bank’s Total capital
c)
Credit Equivalent Amount of Off-Balance Sheet Exposure
d)
1 and 3 which is higher
46.
Which of the following statement is true
a)
Priority sector lending include only those sectors as part of the priority sector, that impact large sections of the population.
b)
Home loan to individual upto 30.00 lakhs would be treated as priority sector lending in metropolitan centres.
c)
Both a and b are correct
d)
Only a is correct
47.
Before a loan account of a Micro, Small and Medium Enterprise turns into a Non-Performing Asset (NPA), banks or creditors should identify incipient stress in the account by creating -------- sub-categories under the Special Mention Account (SMA) category
a)
one
b)
Two
c)
Three
d)
Four
48.
0 for MSME would as below
a)
0-30 days
b)
0-29 days
c)
7-30 days
d)
7-29 days
49.
A composite loan limit of Rs.------- crore can be sanctioned by banks to enable the MSE entrepreneurs to avail of their working capital and term loan requirement through Single Window
a)
5.00 cr
b)
4.00 cr
c)
3.00 cr
d)
1.00 cr
50.
Government of India, Ministry of Micro, Small and Medium Enterprises had launched Credit Linked Capital Subsidy Scheme (CLSS) for Technology Upgradation of Micro and Small Enterprises subject to
a)
Ceiling on the loan under the scheme is Rs.4.00 crore
b)
Ceiling on the loan under the scheme is Rs.2.00 crores
c)
Ceiling on the loan under the scheme is Rs.3.00 crores
d)
Ceiling on the loan under the scheme is Rs. 1.00 crore
51.
Credit Linked Capital Subsidy Scheme (CLSS) for MSME would be implemented by
a)
SIDBI and NABARD
b)
SIDBI and IDBI
c)
IDBI and SBI
d)
RBI and Ministry of finance
52.
Choose the correct statement/s
a)
Eligible Loan to MSME can be covered by SBI Life
b)
Eligible loan to MSME can be covered by CGTMSE
c)
Either 1or 2
d)
None of the above
53.
Which of the following statement/s is true
a)
Loan to renewable energy does not come under Priority sector lending
b)
Loan to export credit can be classified as priority sector lending
c)
Both statements are true
d)
none of the above
54.
Which of the following statement/s is true
a)
Loan to Social infrastructure can be classified as priority sector lending
b)
Loan to export credit can be classified as priority sector lending
c)
Only a
d)
Both 1 and 2
55.
The Government of India has enacted the Micro, Small and Medium Enterprises Development under
a)
MSMED act 2006
b)
MSMED act 2007
c)
MSMED act 2005
d)
MSMED act 2008
56.
Advances to Bank Directors’ is restricted under which act
a)
Section 20(1) of the Banking Regulation Act
b)
Section 23(1) of the Banking Regulation Act
c)
Section 22(1) of the Banking Regulation Act
d)
No restriction at all.
57.
The marginal cost of funds will comprise of
a)
Marginal cost of borrowings
b)
Return on networth
c)
Both 1 and 2
d)
None of the above
58.
MCLR will be a
a)
Tenor linked benchmark
b)
cost of credit linked bench mark
c)
both a and b
d)
None, it will be decided by RBI
59.
Banks shall review and publish their Marginal Cost of Funds based Lending Rate (MCLR)
a)
Banks shall review and publish their Marginal Cost of Funds based Lending Rate (MCLR)
b)
By Reserve Bank of India on pre-announce date
c)
Of different maturities every month on a pre- announced date with the approval of the Board or empowered committee with prior approval of Reserve Bank of India
d)
Either a or c
60.
Which of the following statement is true:-
a) Banks shall have the freedom to determine the interest rates on the advances linked to market determined external benchmarks.
b) banks shall have the option of publishing MCLR of any other longer maturity.
a)
Only a
b)
Only b
c)
Both a & b
d)
None
61.
Banks shall have a -----------delineating the components of spread charged to a customer.
a)
Board approved policy
b)
RBI approved policy
c)
Board approved policy duly vetted by RBI
d)
None of the above
62.
The credit risk premium charged to the customer represents
a)
default risk arising from loan sanctioned
b)
cost of deposit
c)
cost of credit
d)
Loss given default
63.
The Marginal Cost of Funds based Lending Rate (MCLR) prevailing on the date of first disbursement, whether partial or full, shall be applicable till
a)
the next reset date, irrespective of the changes in the benchmark during the interim
b)
at any date as decided by bank , irrespective of the changes in the benchmark during the interim
c)
At every year end, irrespective of the changes in the benchmark during the interim
d)
As and when advised by Reserve Bank of India
64.
The marginal cost of borrowings shall have a weightage of ----------% of Marginal Cost of Funds
a)
a) 92
b)
95
c)
96
d)
98
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