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

Q227: In the case of a takeover of bank branches in rural and semi-urban centres, the existing borrowers are mandatorily required to continue their accounts with the acquiring bank, to ensure financial stability.

A
True
B
False
C
True, but only for term loans
D
True, provided the interest rate is unchanged
✅ Correct Answer: B
The Directions state that in case of a takeover of bank branches in rural and semi-urban centres, the existing borrowers shall not be put into any disadvantage and must have the option of continuing with the existing bank or shifting to the acquiring bank.
It is not mandatory.