MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

The threshold for early warning signal (EWS) and red-flagged account (RF-A) is an exposure of _____, at the level of a bank irrespective of
the lending arrangement: 

50% studentsanswered this correctly

Important Questions on Loan Policy and Loan Documentation

MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 98
All accounts beyond ______classified as red-flagged account or 'Frauds' must be reported on the CRILC data platform together with the dates on which the accounts were classified as such.
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 99
Banks are to initiate and complete a staff accountability within _____ from the date of classification of an account, as a fraud.
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 100
For fraud accounts, the entire amount due to the bank or for which the bank is liable (including in case of deposit accounts), is to be provided for over a period not exceeding _______ commencing with the quarter in which the fraud has been detected, if the fraud has been reported without delay, to RBI:
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 1

What is the networking capital (margin) requirement under the second method of lending of Tandon Committee:

a. 25% of total current assets

b. 25% of total assets

c. 25% of the working capital gap

d.  None of the above

MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 2

The renewal of cash credit limits for working capital is stipulated by RBI on:

a. Half-yearly basis

b. Quarterly basis

c. Annual basis

d. Bi-annual

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 3
The working capital limit sanctioned by banks, particularly the cash credit limit, is repaid out of _____.
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 4

Current assets of a company are Rs.800 lac and other current liabilities are Rs.80 lac. What shall be the amount of Permissible Bank Finance, as per the second method of lending as suggested by the Tandon Committee?

a. Rs.720 lac

b. Rs.640 lac

c. Rs.520 lac

d. Rs.440 lac

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 5

Internal rate of return in the context of project financing indicates:

a. The profit made by the unit

b. Benchmark prices for material transfer

c. The rate of discount at which the net present value of cash flows from the project is zero

d. Rate of rejection of project

 e. a and c