Module: | Capital Adequacy, Basel Norms & Monetary Policy
Q28: Which statements regarding penal measures against wilful defaulters are correct under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions?
1. New ventures are barred from credit facilities for five years after removal from the LWD.
2. Additional credit facilities are barred for one year after removal from the LWD.
3. The bar on new ventures applies for ten years.
4. The bar on additional credit applies for three years.
2. Additional credit facilities are barred for one year after removal from the LWD.
3. The bar on new ventures applies for ten years.
4. The bar on additional credit applies for three years.
✅ Correct Answer: A
No credit for floating new ventures is allowed for five years.
The bar on additional credit facilities is effective for one year.
Both periods start after removal from the LWD.
The bar on additional credit facilities is effective for one year.
Both periods start after removal from the LWD.