N.Rangarajan's Model Online Promotion Test On Loan Policy Document 2010

40 Questions | Total Attempts: 63

SettingsSettingsSettings
Please wait...
Document Quizzes & Trivia

The Test contains 100 question on Credit Policy Document 2010. Each Question Carries one Mark. No Negative Marks. Time allowed 60 minutes. We have fixed 70% as Pass Grade. There is no harm if you keep the New LPD 2010 (Orange Color Book) by your side and answer questions. It will improve your preparation. Please take Quiz Password by e Mailing to [email protected] Com your full particulars like Name,Age,Place of Work/Study,Designation/Course,Phone/Mobile No and AddressWith Best Wishes from N. Rangarajan


Questions and Answers
  • 1. 
    What is the validity of Loan Policy Document 2010?
    • A. 

      1 Year

    • B. 

      18 Months

    • C. 

      2 Years

    • D. 

      Till The Next Policy is Published

    • E. 

      Infinite

  • 2. 
    Who can extend the validity of Loan Policy Document 2010?
    • A. 

      Board of Directors

    • B. 

      MCB (Management Committee of Board)

    • C. 

      GM's Committee

    • D. 

      TMC (Top Management Committee)

    • E. 

      CMD

  • 3. 
    What will form part of Loan Policy Document 2010 subsequent to its Publication?
    • A. 

      Amendments

    • B. 

      Periodical Permanent Circulars

    • C. 

      Periodical Permanent/Master/Transient Circulars

    • D. 

      The changes in Loan Policy announced by RBI/Govt of India

    • E. 

      IBA Circulars

  • 4. 
    What are the voluntary codes set set by the Bank for its commitment to customers?
    • A. 

      FPCL (Fair Practices Code for Lenders)

    • B. 

      Banking Codes and Standards

    • C. 

      Lenders Liability Act

    • D. 

      Right To Information Act

    • E. 

      Ombudsman

  • 5. 
    The Maturity Profile of Loan Book is taken care of by
    • A. 

      ALIS

    • B. 

      ICRIS

    • C. 

      ICRIS/ACIS

    • D. 

      Data Cleaning

    • E. 

      Data Warehouse (Citrix)

  • 6. 
    What is the % of Credit that should go towards PS advances out of total credit for Banks in India?
    • A. 

      18%

    • B. 

      25%

    • C. 

      40:20:40

    • D. 

      40% of Adjusted Net Bank Credit or Credit Equivalent amount of OFF Balance Sheet Exposure whichever is higher

    • E. 

      40%

  • 7. 
    What is the cut off date for computing Adjusted Net Bank Credit?
    • A. 

      31.03.2011

    • B. 

      As on 31st March of Previous Year

    • C. 

      30.09.2010

    • D. 

      01.04.2010

    • E. 

      On a Surprise date given by RBI

  • 8. 
    What should be the share of SC/St beneficiaries under DRI Loans granted?
    • A. 

      100%

    • B. 

      40%

    • C. 

      33.33%

    • D. 

      1%

    • E. 

      5%

  • 9. 
    How much DRI advances should be routed through rural and semi urban branches?
    • A. 

      One third

    • B. 

      Two third

    • C. 

      3/4

    • D. 

      4/5

    • E. 

      None of the above

  • 10. 
    Expand DRI
    • A. 

      Departmment of Revenue Intelligence

    • B. 

      Differential Rate of Interest

    • C. 

      Differential Interest Rate

    • D. 

      District Recovery Initiative

    • E. 

      None of the above

  • 11. 
    The Bank being a member of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), will extend advances under Credit Guarantee Fund Scheme for eligible Micro and Small Enterprises upto the credit limits of Rs _________lakhs
    • A. 

      50

    • B. 

      75

    • C. 

      100

    • D. 

      125

    • E. 

      200

  • 12. 
    The SME units with working capital credit limits upto Rs.__________ crore will continue to be assessed as per turnover method
    • A. 

      7.50

    • B. 

      10 crores

    • C. 

      20 crores

    • D. 

      50 crores

    • E. 

      100 crores

  • 13. 
    How many commodities are there under selective credit control?
    • A. 

      Paddy

    • B. 

      Pulses

    • C. 

      Edible Oil Seeds

    • D. 

      Onion

    • E. 

      Buffer and Unreleased Stock of Sugar Mills under Levy and Free Sale

  • 14. 
    How credit is controlled under Selective Credit Control Commodities?
    • A. 

      By Margin

    • B. 

      By Pricing

    • C. 

      By Collateral Cover

    • D. 

      By Repayment

    • E. 

      All the above

  • 15. 
    While advancing against shares, Which sections of particular act should be strictly followed?
    • A. 

      Sec 19(2) and (3) of Banking Regulation Act 1949

    • B. 

      Sec 31 and 85 of NI act

    • C. 

      Section 27 and 31 of RBI act

    • D. 

      Sec 171 and 172 of Indian Contract Act

    • E. 

      Section 41 and 42 of Banking Companies Acquisition Act

  • 16. 
    How much % of share a Bank as Pledgee,Mortgagee or Absolute Owner can hold in any company?
    • A. 

      Not Exceeding 30% of Paid Up Share Capital of the Company

    • B. 

      Not Exceeding 30% of Paid Up Share Capital of the Bank and reserves

    • C. 

      A or B Whichever is less

    • D. 

      A or B Whichever is more

    • E. 

      As Investment we Bank can Hold Not Exceeding 30% of Paid Up Share Capital of the Bank and reserves and Security towards any advance Bank Can Hold Not Exceeding 30% of Paid Up Share Capital of the Company

  • 17. 
    In Terms of Section 20(1) of the Banking Regulation Act 1949, a Bank will not grant any loans and advances on the security of  its _________ shares
  • 18. 
    Bank can sanction Loan against Certificate of Deposits.
    • A. 

      True

    • B. 

      False

  • 19. 
    Rating Grade IOB 9 and below warrants action under
    • A. 

      Recovery Policy

    • B. 

      Exit Policy

    • C. 

      Multiple/Consortium Banking Policy

    • D. 

      Rehabilitation and Nursing Policy

    • E. 

      OTS Policy

  • 20. 
    The permission to allow operations in NPA account is known as
    • A. 

      Survival Strategy

    • B. 

      Going Concern

    • C. 

      Ever Greening

    • D. 

      Quick Mortality

    • E. 

      Holding On Operations

  • 21. 
    How long a credit sanction is valid for availment?
    • A. 

      3 months

    • B. 

      6 months

    • C. 

      12 months

    • D. 

      Till facilities are availed by Borrower

    • E. 

      No Time Frame Specified

  • 22. 
    When two valuation reports are required?
    • A. 

      When the value of the Property is above Rs 1 Crore

    • B. 

      When the value of the Property is above Rs 2 Crore

    • C. 

      When the value of the Property is above Rs 3 Crore

    • D. 

      When the value of the Property is above Rs 5 Crore

    • E. 

      When the value of the Property is above Rs 1o Crore

  • 23. 
    If the variation between two Valuation reports are > 10%, What is the action suggested?
    • A. 

      Lower of the two should be taken

    • B. 

      A Third Valuer @ The cost of Borrower should be engaged

    • C. 

      Matter to be referred Institute of Valuers

    • D. 

      We have another Bank Panel Valuer

    • E. 

      We have to summon our Bank's Engineers from Premises Department

  • 24. 
    What is the basic difference is Loan Review Mechanism and Credit Audit?
    • A. 

      Off Site and On Site Audit Process

    • B. 

      On Site and Off Site Audit Process

    • C. 

      Internal and External Audit

    • D. 

      Statutory and Non Statutory Audit

    • E. 

      Revenue Audit and Compliance Audit

  • 25. 
    Credit Audit is applicable to 
    • A. 

      Fund Based Limits of Rs 1 Crore

    • B. 

      Non Fund Based Limits of Rs 1 Crore

    • C. 

      FB + NFB Limits of Rs 1 crore

    • D. 

      TL Limits of Rs 2 Crores

    • E. 

      Working Capital Limits of Rs 2 Crore