Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | KYC, NPAs, Advances & Investment Valuations

Q162: Which statements regarding the classification process are correct under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions?

1. The borrower has 21 days to reply to the show-cause notice.
2. The borrower has the right to be represented by a lawyer during the hearing.
3. The Review Committee conducts the personal hearing.
4. The classification process is an in-house proceeding.
A
1 and 2 only
B
1 and 4 only
C
2 and 3 only
D
1, 3, and 4 only
✅ Correct Answer: B
The borrower must submit a reply within 21 days.
The process is an in-house proceeding.
The borrower does not have the right to be represented by a lawyer.