Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
What is the default timeline for a short-duration agricultural loan to be declared a Non-Performing Asset?
What timeframe of missed payments triggers an SMA-0 classification for a borrower's account?
Which automated mechanism calculates the number of days a payment is late without manual intervention?
What is the minimum aggregate corporate debt exposure that forces a bank to report an SMA-2 account to the central tracking database?
What maximum duration does a non-performing loan remain in the Sub-Standard category before a mandatory downward reclassification occurs?
When does the core banking software reclassify a non-performing asset into the Doubtful category?
Which operational condition legally defines a financial account as a Loss Asset prior to its formal accounting erasure?
Direct Answer
An internal or external auditor formally identifies the debt as completely uncollectible
Which event triggers an immediate loss classification that bypasses the standard twelve-month ageing window?
How do commercial banks internally categorize a non-performing asset that has remained in the Doubtful classification for two years?
Which mathematical formula determines a bank's Provisioning Coverage Ratio?
Direct Answer
$(\text{Total Cash Saved for Bad Loans} \div \text{Total Raw Bad Loans}) \times 100$
What minimum regulatory provisioning bracket is typically required for perfectly healthy loans that have never missed a payment?
What penalty percentage must a bank lock away for the unsecured portion of a loan that has just crossed into the Sub-Standard category?
What percentage of the secured loan portion must a bank provision when an asset sits in the Doubtful category for a period between one and three years?
Which financial component forms the highest quality safety buffer capable of absorbing loan losses without forcing a bank to cease operations?
What minimum baseline Capital to Risk-Weighted Assets Ratio are commercial banks in India legally mandated to maintain?
How much advance warning time must a commercial bank legally provide a defaulting borrower before forcefully seizing a physical asset under the SARFAESI framework?
What proportion of upfront cash versus deferred receipts constitutes the standard industry formula for an Asset Reconstruction Company purchasing a bad loan?
Which severe operational restriction can regulators impose if a bank's unprotected bad debt crosses the twelve percent danger line?
What monetary threshold triggers mandatory Customer Due Diligence for occasional transactions, whether conducted singly or in multiple connected steps?
What is the minimum required frequency for a bank to review its internal Money Laundering and Terrorist Financing Risk Assessment?
Which scenario legally compels a banking institution to initiate a formal Customer Identification Procedure for an individual who does not hold an account with them?
Direct Answer
When the individual attempts to purchase third-party financial products exceeding a value of 50,000 rupees
What is the maximum allowable aggregate balance across all deposit accounts for a customer onboarded through a non-face-to-face OTP-based e-KYC process?
Which restriction applies to borrowal accounts that are opened using the non-face-to-face OTP-based e-KYC method?
Direct Answer
The bank can only sanction term loans with an aggregate annual limit not exceeding 60,000 rupees
What is the maximum duration a deposit account opened via OTP-based e-KYC can remain operational before the bank must execute a full Customer Due Diligence or Video-CIP?
What is the maximum allowable aggregate balance that a Small Account can hold at any single point in time?
Which document combination is legally mandated for a banking institution to onboard a corporate entity?
Direct Answer
A resolution from the Board of Directors paired with a Power of Attorney granted to its transacting managers
How frequently must a banking institution conduct a periodic review of a customer's designated money laundering risk categorization?
What is the mandated timeframe for a bank to execute positive confirmation when a customer self-declares an address change during a periodic KYC update?
How does the regulatory framework define the "temporary ceasing of operations" for a customer who fails to provide a PAN or Form No. 60?
Direct Answer
The suspension of all transactions while making a singular exception for credits applied to asset or loan accounts
What is the regulatory consequence for a commercial bank if an account is confirmed as a Money Mule operation but the branch failed to file a Suspicious Transaction Report?
Direct Answer
The institution is legally deemed to have failed in complying with the Know Your Customer Directions
What minimum traceability element must an ordering bank attach to a domestic wire transfer below 50,000 rupees when the originator is not a direct account holder?
Which class of asset is explicitly protected and exempted from possession and enforcement measures by lenders under Section 31 of the SARFAESI Act?
What is the mandated statutory duration a secured creditor must grant a defaulting borrower to discharge their liabilities upon issuing a demand notice?
What is the minimum outstanding financial assistance threshold required to invoke the recovery provisions of the SARFAESI Act?
What mandatory financial precondition must a borrower fulfill to file a secondary appeal before the Debt Recovery Appellate Tribunal?
Direct Answer
Deposit of 50 percent of the total debt claimed by the secured creditor