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Questions and Answers
What action is required once stress begins in an account?
What action is required once stress begins in an account?
- Increase credit limit
- No action is required
- Extra monitoring and corrective action (correct)
- Ignore the situation
How is an asset classified as SMA?
How is an asset classified as SMA?
- Exceeding the sanctioned limit for 30 days
- Paying interest on term loans late
- Non-payment of debt whole, part, or installment when due (correct)
- Irregularity in maintaining stipulated margin
What is the indicative list of financial difficulty in the context of account monitoring?
What is the indicative list of financial difficulty in the context of account monitoring?
- Irregularity in cash credit accounts (correct)
- Paying instalments on time
- Maintaining stipulated margin drawing
- Realizing periodic interest debit
What is the consequence of default for credit facilities for running accounts?
What is the consequence of default for credit facilities for running accounts?
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What does the RBI Defaulter List primarily focus on?
What does the RBI Defaulter List primarily focus on?
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Why is it difficult to bring an account back to order once overdue?
Why is it difficult to bring an account back to order once overdue?
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What type of accounts fall under Special Mention Accounts (SMA) classification?
What type of accounts fall under Special Mention Accounts (SMA) classification?
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In the context of account monitoring, what does SMA 2 represent?
In the context of account monitoring, what does SMA 2 represent?
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What happens once an asset is classified as SMA?
What happens once an asset is classified as SMA?
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What is the consequence of non-payment of debt for credit facilities for running accounts?
What is the consequence of non-payment of debt for credit facilities for running accounts?
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