Module: | KYC, NPAs, Advances & Investment Valuations
Q168: Which statements regarding the transfer of defaulted loans are correct under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions?
1. The transferor must complete the wilful defaulter classification before transferring the asset.
2. The transferor must report the borrower to CICs before the transfer.
3. The transferee must report the account as a wilful defaulter until the balance falls below ₹25 lakh.
4. The transferee has no reporting obligations for purchased debts.
2. The transferor must report the borrower to CICs before the transfer.
3. The transferee must report the account as a wilful defaulter until the balance falls below ₹25 lakh.
4. The transferee has no reporting obligations for purchased debts.
✅ Correct Answer: C
The transferor must investigate and classify the borrower before the transfer.
They must report it to CICs.
The transferee must continue reporting until the balance drops below ₹25 lakh.
They must report it to CICs.
The transferee must continue reporting until the balance drops below ₹25 lakh.