WorksheetsLoan Policy and Operational Guidelines
Total questions: 30
Worksheet time: 18mins
Which of the following is least likely to be true regarding the objectives of Loan Policy Guidelines of the Bank?
Asset to remain secure, performing and standard
To enlarge client base & to ensure continuous growth of loan
To address the genuine credit needs of existing clients
To establish a diversified approach in credit processing
To mitigate and reduce the risk
Which of the following is least likely to be true regarding Mission as per Loan Policy Guidelines of the Bank?
To gain market recognition in the chosen area like RAM
to be a next-generation digitally enabled universal bank
to be a Bank known for inclusive, responsive and responsible banking
Adoption of customer centric business models
Significant investment in Customer development
_____ is an enterprise that is controlled by another enterprise known as parent
Associate
Subsidiary
Joint Venture
Partnership
LLP
Which of the following is Non-Corporate borrower?
HUF
LLP
ABC is a group dealing with our Bank and the largest exposure within the group is Rs 120 Crores. A Rice Mill account with exposure of Rs 25 Crores within the ABC group shall be submitted to ____ directly
Large Corporate Vertical
Mid Corporate Vertical
MSME Vertical
Agri Business Department
Retail Asset Vertical
Which of the following is not true regarding the concept of PIM?
Applicable for the new proposals of Rs 20 Crs and above under the delegation of Central Office only
PIM for company from existing group who is our borrower is not mandatory
PIM is not required in respect of credit facilities proposed to PSUs
PIM is not required in respect of credit facilities proposed to AA rated accounts
Maximum timeline allowed for sanction of final proposal is 120 days from the date of PIM approval
A Proposal of Rs 100 lakh is sanctioned by MLP within their delegation with collateral coverage of 125 percent by way of residential building. Now, the borrower wants to substitute the collateral security of residential building with vacant plot having clear demarcations resulting in increased collateral coverage of 200 percent. Which of the following is true as per loan policy guidelines regarding substitution of security?
Substitution of security is permitted as collateral coverage increases and the plot has clear demarcations.
Substitution of security is not permitted regardless of increased collateral coverage.
Substitution of security is permitted only if the vacant plot is commercial property.
Substitution of security requires approval from higher authority even if collateral coverage increases.
Which of the following is not part of Thrust area?
Rice Mill
Paints
Warehouse
Electric Mobility
Medium Enterprise
Which of the following is not part of low priority sectors?
Refractories
Solvent Oil Extraction
Aluminium
Iron ore mining
Shipping Industry
In which of the following Retail Loan cases Branch Head/RLP Head shall invariably lead the due diligence?
There shall be an exception for obtaining passport details from following directors in case of proposals of Rs 50 Crs and above
Executive Directors
Promoter Directors
Nominee Director
Independent Director who has provided guarantee
Managing Director
Business Information Report from agencies empanelled by the Bank like MIRA, D&B etc to be obtained for new borrowers while on-boarding the borrowers with credit facilities of ______
Rs 25 Cr and above
Above Rs 25 Cr
Rs 5 Cr and above
Above Rs 5 Cr
Buyers constituting 20 percent of total Sales
As per loan system of delivery of Bank Credit, minimum level of loan component shall be __ percent
30
40
50
60
Unsecured loan that can be considered as quasi equity in respect of MSME borrowers with exposure of Rs 20 Crs is ________
100 percent of capital plus reserves
100 percent of unsecured loans
75 percent of capital plus reserves
75 percent of unsecured loans
50 percent of capital plus reserves
Two independent valuations are to be obtained from the panel valuers in cases where the value of any particular property is ______
Rs 2 Cr and above
Above Rs 2 Cr
Rs 5 Cr and above
Above Rs 5 Cr
Above Rs 1 Cr
Minimum threshold for participation in consortium of Rs 300 Crs
Rs 25 Crs
Rs 30 Crs
Rs 250 Crs
Rs 45 Crs
Rs 60 Crs
Credit Process Audit (CPA) shall be applicable in respect of MSME accounts of aggregate credit limits of _____ with Rural Branches
10 lakhs & above
Above Rs. 10 lakhs
Rs. 1 Cr and Above
20 lakhs & above
Which of the following is not true regarding disbursement on reimbursement basis?
Reimbursement should be restricted to expenses made in previous 12 months only
Such cases should be referred for concurrence to next higher authority for loans sanctioned upto ZLCC
Disbursements should not be made on oral instructions by any bank official even in emergent situations
Advances may be disbursed by way of reimbursement after verifying actual incurrence of expenditure and source thereof
Shall not be allowed in general
While identifying and implementing the restructuring or rehabilitation package, HOLDING ON OPERATION may be considered for a period of _________ to potentially viable MSME units
12 months
9 months
6 months
3 months
24 months
Derivative limit will be ____ times the Import LC limit for the sale transactions and ____ times the post-shipment limits for the purchase transactions
3, 4
4, 3
3, 3
4, 4
3, 5
Sanctioning Authority shall be decided based on Total Exposure of ____
FB plus NFB including derivatives with CCF
FB plus NFB excluding derivatives with CCF
FB with derivatives
Only FB
Only NFB
Which of the following is not true regarding finance for acquiring second hand commercial vehicle
Minimum margin is 50 percent
Vehicle shall not be 3 years old from date of original registration
Loan tenor shall not exceed 7 years from the date of original registration
Delegation shall be RLCC I and above
Report from Automobile Certification Agency shall be obtained
Timelimit for disposal of MSME application within the delegation of MLP is _______
7 days
Fortnight
8 to 9 weeks
Which of the following is not under the exclusive scope of Large Corporate Vertical at Central Office?
TReDS
Pooled Municipal Debt Obligation
Infrastructure sector of Communication
Lending to Infrastructure Investment Trusts
Managing Loan Syndication Desk
Which of the following is not the objective of establishing Retail Loan Points (RLPs)?
To enable growth of retail assets through focused sales and marketing
To ensure monitoring of Retail Loans
To ensure quality credit appraisal
To enhance customer service
Quick turnaround time
Threshold limit for applicability of exit guidelines is ___
Rs 5 Crore and above
Above Rs 5 Crore
Rs 25 Crore and above
Above Rs 25 Crore
Rs 10 Crore and above
Minimum margin for stock in respect of packing credit is ___ percent
25 percent
10 percent
40 percent
5 percent
Minimum margin for loan against deposit (third party) is ____ percent
10
11
15
20
25
Exception for submission of Audited Balance Sheet with exposure from banking system being Rs 25 lakh and above is ______
Schematic loans
KCC including Animal Husbandry and Fishery
Retail Trade
CRE-RH
Gems and Jewellery
Guidelines related to Cibil MSME Rank (CMR) is applicable to?
MSME Proposals of above Rs 25 lakh and upto Rs 25 Crores
MSME Proposals of above Rs 50 lakh and upto Rs 25 Crores
MSME Proposals from Rs 25 lakh to Rs 25 Crores
MSME Proposals from Rs 50 lakh to Rs 25 Crores
MSME Proposals of above Rs 50 lakh and upto Rs 50 Crores
