Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Priority Sector, Consumer Protection & Digital Lending

Q128: Credit Institutions (CIs) must include in their ...... suitable provisions for obtaining Credit Information Reports (CIRs) from one or more CICs for credit decisions.

A
marketing materials
B
annual financial statements
C
loan policies / credit appraisal processes
D
customer service charters
✅ Correct Answer: C
The correct answer is C. Credit Institutions are required by the regulator to formally include in their internal loan policies or credit appraisal processes suitable, binding provisions for obtaining CIRs from one or more CICs.
This ensures that all credit decisions are fundamentally based on verified, system-generated credit information rather than subjective judgment, institutionalizing robust risk management.