Module: | Priority Sector, Consumer Protection & Digital Lending
Q145: For Non-Performing Assets (NPAs) with a balance of ₹5 crore and above, which of the following due diligence measures are mandatory?
1. Annual stock audit by external agencies.
2. Quarterly stock audit by internal auditors.
3. Valuation of immovable properties by appointed valuers once in every 3 years.
4. Valuation of immovable properties by appointed valuers once in every 5 years.
Which of the statements given above is/are correct?
2. Quarterly stock audit by internal auditors.
3. Valuation of immovable properties by appointed valuers once in every 3 years.
4. Valuation of immovable properties by appointed valuers once in every 5 years.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. For large Non-Performing Assets (NPAs) with an outstanding balance of ₹5 crore and above, RBI mandates two specific and rigorous due diligence schedules to ensure realistic asset valuation.
Statement 1 is correct: A stock audit must be strictly conducted on an annual basis by external, independent agencies (making Statement 2 incorrect). Statement 3 is correct: The valuation of collateral, specifically immovable properties, must be carried out by officially appointed valuers once every three years (making Statement 4 incorrect).
Statement 1 is correct: A stock audit must be strictly conducted on an annual basis by external, independent agencies (making Statement 2 incorrect). Statement 3 is correct: The valuation of collateral, specifically immovable properties, must be carried out by officially appointed valuers once every three years (making Statement 4 incorrect).