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

Q157: While the general rule mandates that interest shall be charged on all advances at monthly rests, which specific category of advances is exempted and governed by separate circulars?

A
Housing loans
B
Personal loans below ₹50,000
C
Agricultural advances, and advances to farmers
D
Advances to Micro and Small Enterprises (MSEs)
✅ Correct Answer: C
The Directions mandate that interest shall be charged on all advances at monthly rests, provided that interest on agricultural advances and advance to farmers shall be charged as per specific instructions contained in separate RPCD circulars.