11. Under the provision of SARFAESI Act 2002, where is the transaction of securitisation is registered:
1. Registrar of Companies
2. Registrar of Assurances
3. Registrar of Firms
4. Registrar of Central Registry
5. None of the above
Option “4” is correct. Under the provision of SARFAESI Act 2002, the transaction of securitisation is registered under the Registrar of Central Registry the Reserve Bank in such form* and manner as it may specify.
12. Prudential norms prescribed by RBI include norms relating to-
1. Accounting, Exposure, and Capital Adequacy.
2. Banking, Development and Technology
3. Statistical analysis, Information technology
4. Exposure and credit analysis
5. None of the above
Option “1” is correct. Prudential norms prescribed by RBI include norms relating to Accounting, Exposure, and Capital Adequacy.
13. If Interest and/ or instalment of principal remain overdue for a period of more than 90 days is ___
1. Overdraft
2. Bills of exchange
3. Non Performing Asset
4. Credit card installment
5. Term Loan
Option “3” is correct. If Interest and/ or instalment of principal remain overdue for a period of more than 90 days is a NPA.
14. Provisioning norms on standard assets on commercial real estate is __
Option “2” is correct. Provisioning norms on standard assets on commercial real estate is 1%of outstanding.
15. Which among the following statement is true in case of up-gradation of loan account classified as NPA’s?
1. If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account may be classified as ‘standard’ accounts immediately.
2. After one year after the date when the first payment of interest or of principal, whichever is earlier, falls due, subject to satisfactory performance during 12 months’ period from the date of starting payment after moratorium period.
3. Both a & b
4. None of the Above
5. Either a or b
Option “3” is correct. Upgradation of loan account classified as NPA’s 1.If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account may be classified as ‘standard’ accounts immediately. 2.Restructured accounts: After one year after the date when the first payment of interest or of principal, whichever is earlier, falls due, subject to satisfactory performance during 12 months’ period from the date of starting payment after moratorium period.
16. Age of Doubtful Asset / Provision as % of a secured portion
(i) Doubtful up to 1 year D1 = 25% of RVS (Realisable value of security)
(ii) Doubtful for more than 1 year to 3 years D2 = 40% of RVS
(iii) Doubtful for more than 3 years; D3 = 100% of RVS
Which among the following is correct?
1. Only iii
2. Both ii & iii
3. Both i & ii
4. All i, ii & iii
5. Both i & iii
Option “4” is correct. Provisioning is made on all types of asset under doubtful assets it is based on the age of doubtful assets against provision has a percentage of secured position: (i) Doubtful up to 1 year D1 = 25% of RVS (Realisable value of security) (ii) Doubtful for more than 1 year to 3 years D2 = 40% of RVS (iii) Doubtful for more than 3 years; D3 = 100% of RVS
17. Which among the following section of the amended SARFAESI Act allows for the filing of a caveat by the lender in cases in which an appeal is expected?
Option “4” is correct. The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2011, Section 18C of the new Act allows for the filing of a caveat by the lender in cases in which an appeal is expected.
18. Under SARFAESI Act, 2002, In section 18 the amount to be deposited can be reduced up to___________.
1. 50%
2. 25%
3. Below 25%
4. 10%
5. 20%
Option “2” is correct. Under SARFAESI Act, 2002, In section 18 the amount to be deposited can be reduced up to 25%.
19. As per SARFAESI Act provisions, if the borrower fails to comply with the notice, the Bank may:
1. Take possession of the security for the loan
2. Sale or lease or assign the right over the security
3. Manage the same or appoint any person to manage the same
4. All of the above
5. Only a & b
Option “4” is correct. The SARFAESHI Act, 2002 gives powers regarding “seize and desist” to banks. Banks may give a notice in writing to the defaulting borrower requiring it to discharge its liabilities within 60 days. If the borrower fails to comply with the notice, the Bank may take recourse to one or more of the following measures: 1. Take possession of the security for the loan. 2. Sale or lease or assign the right over the security. 3. Manage the same or appoint any person to manage the same.
20. Which among the following acts gave birth to the Asset Reconstruction Company?
1. Banking regulation act 1949
2. SEBI Act 1992
3. Companies Act 2013
4. SARFAESI Act 2002
5. None of the above
Option “4” is correct. Asset Reconstruction Company (Securitization Company/Reconstruction Company) is a company which is registered under Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SRFAESI) Act, 2002. It is regulated by RBI as a Non-Banking Financial Company (u/s 451 (f) (iii) of RBI Act, 1934).