Q169: Under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions, when should a bank commission a forensic audit of a borrower's affairs?

If the outstanding amount exceeds ₹50 crore.

If the outstanding amount exceeds ₹500 crore.

If the outstanding amount exceeds a threshold fixed by the Board-approved policy.

If the outstanding amount exceeds the limit notified by the RBI annually.

✅ Correct Answer: C

A bank shall consider commissioning a forensic audit.

This applies to accounts with an outstanding amount above a threshold.

This threshold is fixed by the bank's Board-approved policy.

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