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Questions and Answers
What is the primary purpose of the content presented?
What is the primary purpose of the content presented?
Which of the following elements is least emphasized in this document?
Which of the following elements is least emphasized in this document?
What type of guidelines does the document refer to?
What type of guidelines does the document refer to?
What main action does the document suggest to promote environmental responsibility?
What main action does the document suggest to promote environmental responsibility?
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What is the tone of the document regarding environmental awareness?
What is the tone of the document regarding environmental awareness?
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Which audience is likely being addressed in this content?
Which audience is likely being addressed in this content?
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What does the document suggest about current practices regarding environmental conservation?
What does the document suggest about current practices regarding environmental conservation?
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Which concept is indirectly suggested in the document?
Which concept is indirectly suggested in the document?
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What is the primary consideration for classifying an asset based on?
What is the primary consideration for classifying an asset based on?
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What might indicate that an asset is considered uncollectible?
What might indicate that an asset is considered uncollectible?
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In what situation is it considered difficult to envision a problem arising?
In what situation is it considered difficult to envision a problem arising?
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What is implied about an asset with salvage or recovery value?
What is implied about an asset with salvage or recovery value?
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What is implied about the relationship between borrower's securities and credit issues?
What is implied about the relationship between borrower's securities and credit issues?
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What distinguishes an asset as bankable according to the content?
What distinguishes an asset as bankable according to the content?
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What does it mean when an asset is referred to as having a 'little' value?
What does it mean when an asset is referred to as having a 'little' value?
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What concept is suggested by the phrase 'investment in AS' relating to asset classification?
What concept is suggested by the phrase 'investment in AS' relating to asset classification?
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What should member banks ensure regarding the handling of recoveries?
What should member banks ensure regarding the handling of recoveries?
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Which situation will lead to the classification of an account as NPA?
Which situation will lead to the classification of an account as NPA?
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What is required for proper asset classification in member banks' books?
What is required for proper asset classification in member banks' books?
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What is the initial step member banks should take when involved in a consortium?
What is the initial step member banks should take when involved in a consortium?
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If a bank is part of a consortium but does not receive remittances, how should it classify its account?
If a bank is part of a consortium but does not receive remittances, how should it classify its account?
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What is the effect of not obtaining consent from the lead bank on a recovery share?
What is the effect of not obtaining consent from the lead bank on a recovery share?
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In the context of a consortium, what role does the lead bank play regarding recoveries?
In the context of a consortium, what role does the lead bank play regarding recoveries?
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What must banks in a consortium do when they want to recover an asset?
What must banks in a consortium do when they want to recover an asset?
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What is the maximum loan disbursement period for short-term crops?
What is the maximum loan disbursement period for short-term crops?
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How often can new accounts be renewed in relation to crop harvesting?
How often can new accounts be renewed in relation to crop harvesting?
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What is the significance of the term 'maximum 12 months from first loan date'?
What is the significance of the term 'maximum 12 months from first loan date'?
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What does 'up to K per crop needs' imply in the context of short-term loans?
What does 'up to K per crop needs' imply in the context of short-term loans?
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Which of the following conditions pertains to the renewal of loans?
Which of the following conditions pertains to the renewal of loans?
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What does the acronym 'Mr' likely represent in the context of loan disbursement?
What does the acronym 'Mr' likely represent in the context of loan disbursement?
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In agricultural financing, what is the primary purpose of synchronizing renewal accounts?
In agricultural financing, what is the primary purpose of synchronizing renewal accounts?
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What is the effect of loan disbursement for short-term crops on farmers?
What is the effect of loan disbursement for short-term crops on farmers?
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What is the relationship between Mr and the Officers mentioned?
What is the relationship between Mr and the Officers mentioned?
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Which academic year is mentioned alongside the Officers?
Which academic year is mentioned alongside the Officers?
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In what context is 'Do Not Print' mentioned?
In what context is 'Do Not Print' mentioned?
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What kind of exercise is suggested in the reference material?
What kind of exercise is suggested in the reference material?
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Which entity does Mr refer to in a professional context?
Which entity does Mr refer to in a professional context?
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What action is suggested by the phrase 'E unless extremely required'?
What action is suggested by the phrase 'E unless extremely required'?
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What is the focus of the study material referenced?
What is the focus of the study material referenced?
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Who are the 'officers' primarily addressed in the material?
Who are the 'officers' primarily addressed in the material?
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What is implied by the abbreviation 'US' in the document?
What is implied by the abbreviation 'US' in the document?
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What does 'ASH' stand for in this document?
What does 'ASH' stand for in this document?
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What is the significance of the phrase 'in internal circulation only'?
What is the significance of the phrase 'in internal circulation only'?
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What does the term 'study material for promotion' suggest?
What does the term 'study material for promotion' suggest?
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What could the term 'Mr' symbolize throughout the document?
What could the term 'Mr' symbolize throughout the document?
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What must be demonstrated for an advance to not be treated as a non-performing asset?
What must be demonstrated for an advance to not be treated as a non-performing asset?
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In what scenario might an exporter face issues remitting dues despite receiving payment?
In what scenario might an exporter face issues remitting dues despite receiving payment?
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Which of the following is NOT a reason for a bank to be unable to remit an amount?
Which of the following is NOT a reason for a bank to be unable to remit an amount?
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What is essential for asset classification regarding an advance based on payment status?
What is essential for asset classification regarding an advance based on payment status?
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What documentation can help establish that payment has been made to the bank abroad?
What documentation can help establish that payment has been made to the bank abroad?
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What financial classification could be affected if the advance is not properly documented?
What financial classification could be affected if the advance is not properly documented?
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What type of event could prevent an importer from remitting payments despite having paid the bank?
What type of event could prevent an importer from remitting payments despite having paid the bank?
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To avoid an advance being designated as a non-performing asset, what must be true about the payment?
To avoid an advance being designated as a non-performing asset, what must be true about the payment?
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Study Notes
Reference Study Material for Promotion Exercise of Officers 2025-26
- This booklet supplements learning efforts of promotion aspirants.
- Topics include promotion exam within the Bank.
- This booklet is not considered an instruction manual.
- Employees should update themselves by reading Bank's circulars, guidelines, and latest banking industry/ other general awareness related news.
NPA Recovery, Receivables Management & Stressed Asset Management
- Income Recognition: An asset becomes NPA when it ceases to generate income for the bank and principal/interest remains overdue for more than 90 days.
- Overdue: Any amount due to the bank under any credit facility when it is not paid on the due date as fixed by the bank.
- Non-Performing Asset (NPA): A loan or an advance where the principal & interest remains overdue for a period of more than 90 days in respect of a term loan.
- Overdraft/Cash Credit (OD/CC): Account is considered as NPA if the account remains "Out of Order" for 90 days as on the Balance Sheet date.
- Drawing Power: In case of working capital accounts, the drawings limit is determined based on the stock statement, which is older than 3 months.
- Project Loan: Any term loan extended beyond a specific period for economic venture is classified as NPA if it's 90 days overdue or not achieving commercial operations within 2 years of commencement.
Income Recognition (Income Recognition Policy)
- The policy of income recognition has to be objective and based on the record of recovery.
- Banks should not charge and take to income account interest on any NPA, including government guaranteed accounts.
- Interest on advances against Term Deposits, National Savings Certificates (NSCs), Indira Vikas Patras (IVPs), Kisan Vikas Patras (KVPs), and Life policies may be taken to income account on the due date, provided adequate margin is available.
- Debts and commissions earned from banks as a result of renegotiated/ rescheduled extensions on credit should be recognized on an accrual basis over the period of time covered by the renegotiation or rescheduling.
- If any advance (including bills purchased and discounted) becomes NPA, the entire interest accrued and credited to income account in the past periods should be reversed if the reversal is not realized.
Asset Classification
- Banks classify non-performing assets into the following three categories:
- Substandard Assets: NPA for a period of 12 months or more.
- Doubtful Assets: NPA for a period of 12 months or more, where recovery is not possible.
- Loss Assets: Assets with low recovery value.
Advances against Term Deposits, NSCs, KVPs/IVPs, etc.
- Advances against term deposits, NSCs, KVPs/IVPs, and life policies should not be considered as NPAs provided adequate margin is available in the accounts.
- Advances against gold ornaments and other securities are not covered under this norm.
Cropping Pattern
- Short-term crops: Repayment maximum 12.
- Long-term crops: Repayment maximum,18 months.
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Description
Test your understanding of environmental responsibility and asset management concepts with this quiz. Explore the key elements, guidelines, and the implications of asset classification in relation to environmental awareness. Evaluate your knowledge on how current practices promote sustainability.