COPY: Banking Regulations and Risk Management

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What is the primary focus of the Master Circular issued for Urban Co-operative Banks?

Financial reporting and accounting standards
Exposure norms and statutory restrictions (correct)
Customer service and complaints handling
Governance and management of UCBs

What type of advances have a specific ceiling?

Unsecured advances (correct)
Long-term advances
Short-term advances
Secured advances

What is a specific restriction mentioned in the Master Circular?

Granting loans to relatives of directors (correct)
Granting loans to defaulters of statutory dues
Granting loans to non-members
Granting loans to employees only

What type of activities are specifically mentioned in the Master Circular?

Agricultural activities (B) Signup and view all the answers

What is a specific type of loan mentioned in the Master Circular?

Bridge loans (D) Signup and view all the answers

What is the basis for determining Tier-I capital for the purpose of computation?

Prudential Norms on Capital Adequacy (A) Signup and view all the answers

What type of entities are specifically mentioned in the Master Circular?

Non-banking financial companies (D) Signup and view all the answers

What type of exposure is included in the computation of credit exposure?

Funded and non-funded credit limits, and underwriting and similar commitments (C) Signup and view all the answers

What is excluded from credit exposure?

Loans and advances granted against the security of bank's own term deposits (A) Signup and view all the answers

What is considered for arriving at credit exposure limit?

The higher of the sanctioned limit or outstanding amount (B) Signup and view all the answers

What type of securities are included in investment exposure?

Non-SLR securities (D) Signup and view all the answers

What is a necessary step for UCBs before admitting leasing/hire purchase companies as members?

Obtain prior approval of the Registrar of Co-operative Societies concerned (C) Signup and view all the answers

What is the minimum working capital fund required for UCBs to finance NBFC-ICC?

₹25 crores (A) Signup and view all the answers

What percentage of assets in equipment leasing and hire purchase is required for NBFC-ICC?

75% (D) Signup and view all the answers

What is the maximum limit on bank finance for NBFC-ICC in terms of Net Owned Funds (NOF)?

3 times of NOF (D) Signup and view all the answers

What type of leases are allowed for bank finance to leasing concerns?

Full payout leases (D) Signup and view all the answers

What is the ceiling on borrowing by NBFCs in terms of Net Owned Funds (NOF)?

10 times of NOF (B) Signup and view all the answers

Beyond the 10 per cent ceiling, what additional limit is allowed for granting housing loans to individuals?

5 per cent of total assets (A) Signup and view all the answers

How can total assets be reckoned for the purpose of exposure norms?

Based on the audited balance sheet as on March 31 of the preceding financial year (B) Signup and view all the answers

What type of loans given by UCBs is exempted from the prescribed limit?

Working capital loans against hypothecation of construction materials (B) Signup and view all the answers

What is the maximum individual housing loan amount for Tier-1 UCBs?

₹60 lakh per individual borrower (C) Signup and view all the answers

What is the guiding provision for Prudential Inter-bank Exposure Limit?

Chapter VIII of Master Direction on Classification, Valuation and Operation of Investment Portfolio of UCBs (A) Signup and view all the answers

What is the governing provision for Placement / acceptance of Deposits by UCBs?

Chapter VIII of Master Direction on Classification, Valuation and Operation of Investment Portfolio of UCBs (A) Signup and view all the answers

What is the date of the First Bi-monthly Monetary Policy Statement 2015-16?

28.03.2014 (D) Signup and view all the answers

What is the subject of Master Circular No. 11?

Exposure Norms and Statutory / Other Restrictions (A) Signup and view all the answers

What is the purpose of Circular No. 13/09.22.010/2013-14?

Loans for repairs / additions / alterations – enhancement of limits (A) Signup and view all the answers

What is the subject of Circular No. 45/13.05.000/2012-13?

Unsecured credit exposure norms for UCBs (B) Signup and view all the answers

What is the subject of Circular No. 31/13.05.000/2011-12?

Exposure to Housing, Real Estate and Commercial Real Estate (C) Signup and view all the answers

What is the subject of Circular No. 69/09.22.010/2009-10?

Maximum Limit on Unsecured Loans and Advances (D) Signup and view all the answers