N. S. Toor Solutions for Chapter: Loan Policy and Loan Documentation, Exercise 1: TEST YOUR SELF

The following categories of loans can be priced without being linked to MCLR as the benchmark for determining interest rate: 

(1) Advances to bank's depositors against their own deposits. 

(2) Advances to bank's own employees including retired employees. 

(3) Advances granted to the Chief Executive Officer / Whole Time Directors. 

(4) Loans linked to a market determined external benchmark.

Loans to senior officers or their relatives are required to be reported to the Board of the bank. For this purpose, the senior officer means an officer in _____.

To extend a loan against gold ornaments, the valuation is to be done on the basis of:

Which of the following commodities are covered under the RBI's restrictions under selective credit control?

As per RBI regulatory guidelines :

(a) no loan can be allowed against partly paid shares

(b) no loan can be granted to a partnership or proprietary firm against primary security of shares/debentures

(c) these loans can be granted with prior approval of Board of Banks.

Banks are to review and publish their Marginal Cost of Funds based Lending Rate (MCLR) of different maturities every ____ on a pre-announced date with the approval of the board or any other committee to which powers have been delegated.

Banks can issue gurantees favouring other lending institutions in respect of infrastructure projects, where the bank takes a funded share in the project at least to the extent of _____$\%$ of the project cost.

Banks can issue gurantees favouring other lending institutions in normal projects, where the bank takes a funded share in the project at least to the extent of _____$\%$ of the project cost.