Module: | Priority Sector, Consumer Protection & Digital Lending
Q144: Consider the following norms regarding Credit Monitoring and Review of Limits:
1. Stock statements relied upon for determining drawing power should not be older than three months.
2. Regular credit limits must be reviewed within 3 months from the due date.
3. An account is classified as NPA immediately if the limit is not reviewed within 90 days of the due date.
4. An account is classified as NPA if the limit remains unreviewed for 180 days from the due date.
Which of the statements given above is/are correct?
2. Regular credit limits must be reviewed within 3 months from the due date.
3. An account is classified as NPA immediately if the limit is not reviewed within 90 days of the due date.
4. An account is classified as NPA if the limit remains unreviewed for 180 days from the due date.
Which of the statements given above is/are correct?
✅ Correct Answer: B
The correct answer is B. Statements 1 and 2 accurately represent standard regulatory compliance requirements: stock statements used for calculating drawing power must not be older than three months, and credit limits must ideally be reviewed within three months from their due date.
Statement 4 is correct: The actual regulatory NPA trigger for non-renewal occurs only if the regular/ad-hoc credit limits have not been reviewed for 180 days from the due date.
Statement 3 is strictly incorrect because passing the 90-day mark without review is a compliance delay, but it does not instantly force the account into NPA classification.
Statement 4 is correct: The actual regulatory NPA trigger for non-renewal occurs only if the regular/ad-hoc credit limits have not been reviewed for 180 days from the due date.
Statement 3 is strictly incorrect because passing the 90-day mark without review is a compliance delay, but it does not instantly force the account into NPA classification.