This document contains a quiz on credit monitoring and insolvency resolution processes under the Insolvency and Bankruptcy Code of India. It includes 39 multiple choice questions testing understanding of key concepts like the definition of bankruptcy, authorities involved in insolvency resolution, timelines for creditor plans, priority of claims in liquidation, and tools used for credit monitoring. The questions cover topics like the minimum default amounts to initiate insolvency proceedings, authorities adjudicating bankruptcy cases, and reporting requirements to the Central Repository of Information on Large Credits.
This document contains a quiz on credit monitoring and insolvency resolution processes under the Insolvency and Bankruptcy Code of India. It includes 39 multiple choice questions testing understanding of key concepts like the definition of bankruptcy, authorities involved in insolvency resolution, timelines for creditor plans, priority of claims in liquidation, and tools used for credit monitoring. The questions cover topics like the minimum default amounts to initiate insolvency proceedings, authorities adjudicating bankruptcy cases, and reporting requirements to the Central Repository of Information on Large Credits.
This document contains a quiz on credit monitoring and insolvency resolution processes under the Insolvency and Bankruptcy Code of India. It includes 39 multiple choice questions testing understanding of key concepts like the definition of bankruptcy, authorities involved in insolvency resolution, timelines for creditor plans, priority of claims in liquidation, and tools used for credit monitoring. The questions cover topics like the minimum default amounts to initiate insolvency proceedings, authorities adjudicating bankruptcy cases, and reporting requirements to the Central Repository of Information on Large Credits.
This document contains a quiz on credit monitoring and insolvency resolution processes under the Insolvency and Bankruptcy Code of India. It includes 39 multiple choice questions testing understanding of key concepts like the definition of bankruptcy, authorities involved in insolvency resolution, timelines for creditor plans, priority of claims in liquidation, and tools used for credit monitoring. The questions cover topics like the minimum default amounts to initiate insolvency proceedings, authorities adjudicating bankruptcy cases, and reporting requirements to the Central Repository of Information on Large Credits.
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PPTO 2019 CREDIT MONITORING PAPER I
1. Which among the following correctly explains the meaning of
bankruptcy?
A.Legal status of firm or individual who is unable to meet its debt
obligations
B.A bank not able to recover its due from borrowers
C.An economy not able to recover from recession
D.None of these
E.All of these
2. According to provisions of Insolvency and Bankruptcy Code 2016
(IBC, 2016), who can initiate insolvency resolution process (IRP)? A. Debtor B. Creditor C. Government D) Reserve Bank of India Select the correct answer from the options given below:
A.Both A and B
B.Both B and C
C.Only A, B and C
D.All are correct
E.None of these
3. Who will act as regulator under IBC, 2016?
A.Reserve Bank of India
B.Insolvency and Bankruptcy Board of India (IBBI)
C.National Company Law Tribunal (NCLT)
D.All of these
1 PPTO 2019 CREDIT MONITORING PAPER I
E.None of these
4. During insolvency resolution process, within how many days
creditor has to proceed with a revival plan failing with company force to go for liquidation?
A.45 days
B.90 days
C.180 days
D.270 days
E.360 days
5. During insolvency resolution process, how much percentage of
creditors must agree for revival plan to make revival options applicable?
A.25%
B.50%
C.60%
D.66%
E.75%
6. In case there is complexity in deciding the revival plan, how many
days of one time extension can be provided to creditors to decide on the revival plan?
A.30 days
B.45 days
2 PPTO 2019 CREDIT MONITORING PAPER I
C.90 days
D.100 days
E.120 days
7. Who will acts as adjudicating authority in case of insolvency
resolution for companies?
A.National Company Law Tribunal (NCLT)
B.Debt Recovery Tribunal (DRT)
C.Insolvency and Bankruptcy Board of India (IBBI)
D.Supreme Court
E.None of these
8. Who will acts as adjudicating authority in case of insolvency
resolution for individual or proprietor firms?
A.National law company tribunal
B.Debt recovery tribunal
C.Insolvency Bankruptcy board of India
D.Supreme Court
E. High court
9. In case a company goes for liquidation, which among the following
have the first claim to clear the debts?
A.Secured creditor
B.Workmen dues for 24 months
3 PPTO 2019 CREDIT MONITORING PAPER I
C.Unsecured creditors
D.Government dues
E.A & B together
10. Which has become the first bankruptcy case in the country resolved under Insolvency and Bankruptcy Code 2016?
A.Essar Steel Ltd
B.Monnet Ispat and Energy Ltd
C.Jaypee Infratech Ltd
D.Electro Steel Ltd
CV.Alok Industries
11. What is the minimum amount of default in case of companies to
initiate insolvency process?
A.Rs 1000
B.Rs 10000
C.Rs 100000
D.Rs 1000000
E. No limit
12. For taken over MSE loans external rating is exempted for exposure upto Rs. A. 15 crores B. 5 crores C. 10 crores
4 PPTO 2019 CREDIT MONITORING PAPER I
D. Less than 10 crores
E. None of these
13. What is the minimum amount of default in case of individual to
initiate insolvency process?
A.Rs 1000
B.Rs 10000
C.Rs 100000
D.Rs 1000000
E. No such limit
14. All loan accounts of --------------------------- where property is taken as security are to be subjected to Legal Audit by getting the title deeds re-verified by another empanelled advocate (other than the one who has given original opinion confirming genuineness of the title deeds) ? A) Rs 5.00 crores and Above B) Rs 1.00 crores and Above C) Rs 2.00 crores and Above D) Rs 2.50 crores and Above E) Rs 10.00 crores and Above
15. As on date how many companies has been referred to NCLT
by Reserve Bank of India?
A. 6
B.12
C.18
D. 24
E. 36
16.SARFAESI Act 2002 does not concern which of the following aspects:
A. Securitisation of Financial Assets
B. Reconstruction of Assets 5 PPTO 2019 CREDIT MONITORING PAPER I
C. Authority to enforce without the intervention of the court
D. Setting up of Central Registry E. None of the above
17. In which of the following cases, the constitutional validity of the SARFAESI Act 2002 was questioned before Supreme Court: A. Manchester Chemicals vs ICICI bank B.. Manchester Chemicals vs Union of India C.Mardia Chemicals vs Union of India. D. Mardia Chemicals vs ICICI Bank E.. none of the above
18. In case of Mardia Chemicals cases in the relation of SARFAESI Act 2002, which part was declared as invalid by Supreme Court: A. pre-condition of deposit of 75% of the amount by the borrower before going to the DRT B. pre-condition of deposit of 75% of the amount by the borrower After going to the DRT C. pre-condition of deposit of 75% of the amount by the borrower if the bank sells the immovable property and borrower wants to appeal the DRT D. the condition of deposit of 75% of amount by the borrower after DRT decision E. none of the above
19 Under the provision of SARFAESI Act 2002, where a transaction of
securitisation is registered: A. Registrar of Companies B. Registrar of Assurances C. Registrar of Firms D. Registrar of Central Registry E. none of the above
20. Under the provision of SARAESI Act 2002 a charge on moveable property in favour of secured without delivery of possession to the creditor is called: A. mortgage B. assignment C. pledge D. lien E. hypothecation
6 PPTO 2019 CREDIT MONITORING PAPER I
21. In the process of securitisation the non-liquid financial assets are converted into markable securities in the form of: A. shares B. debentures C. pass through certificates D. security receipts E. bonds
22. What norm has to be followed by a securitisation company regarding owned
funds and the acquired financial assets i.e. owned funds as % age of acquired assets A. 20% B. 15% C. 12.5% D.10% E. 5% 23. At the time of take over the bad loans from 3 banks it is found that these banks have filed suits in different DRTs. Securitisation company wants to get these cases in one DRT, which can be permitted by: A. Central Govt. B. Supreme Court C. High Court D. RBI E. DRAT
24. When the securitisation company fails to realize the securitized assets, the qualified institutional buyers holding _______ % of total value of the security receipts can force the securitisation company for a particular decision: A. 75% B. 60% C. 50% D. 40% E. 25%
25. Under the provision of SARFAESI Act 2002 which of the following is not part of the financial asset reconstruction: A. take over of management of the unit 7 PPTO 2019 CREDIT MONITORING PAPER I
B. sale of the asset
C. re-schedulement of the dues payable by the borrower D. taking possession of the assets E.none of the above
26.What is the maximum period allowed to a securitisation company for
recovery of reconstructed financial asset: A. 2 years B. 3 years C. 4 years D. 5 years E. 6 years 27. Under the provision of SARFAESI Act 2002, what is meant by enforcement of security interest: A. sale of assets of the borrowing party by the bank B. sale of charged assets by the secured creditor through DRT C. sale of charged assets by the secured creditor without court intervention D. getting bank's charge registered with Central Registry E.None of these
28. An asset is sold by the secured creditor, what would be the order for the appropriation of proceeds: A. first towards costs, charge incidental towards the preservation of securities etc B. first towards the dues of the secured creditor C. first towards costs and dues to the secured on prorate basis D. secondly, if there is surplus towards other person entitled to the asset E.None of these
29.If after sale of secured asset, the dues of the secured creditor are not paid fully, what option does the secured creditor have:
A. he has to write off the same
B. he can file a suit in a civil court C. he can file a suit in a DRT D. he can file a suit in DRAT E. A and C
30. What time period is to be given to the borrower as a notice before sale of the secured asset?
A. 30 days B. 45 days 8 PPTO 2019 CREDIT MONITORING PAPER I
C. 60 days D. 75 days E. 90 days
31.CRILC main report on all borrower entities aggregate exposure of Rs.50
million and above will be submitted on a A. weekly basis B.monthly basis C.Quaterly basis D.Half yearly basis E.bimonthly basis
32.The lenders shall report to CRILC all borrower entities in default (with aggregate exposure of Rs.50 million and above on a A. weekly basis B.monthly basis C.Quaterly basis D.Half yearly basis E.bimonthly basis
33.Objectives of credit monitoring are
A.All the laid down procedures of the bank are complied with B.Ensure that asset in the standard category do not slip to SMA/NPA C.Identify weak/stressed accounts and take corrective action to protect quality of asset. D. Only A & C are correct E.A, B & C are correct
34. Which of the following are monitoring tools at branch level?
A.Sharp fall in share price
B. Adverse news paper, market reports C.Monthly monitoring reports D.A & B Only E. A, B, & C
35.There is no need to prepare Due Diligence and Legal compliance certificate
for sanctions upto
A. 10 lakhs B. 25.Lakhs C. 50.Lakhs 9 PPTO 2019 CREDIT MONITORING PAPER I
D.For all loans it has to be prepared.
E.None of the above
36.what is the periodicity and exposure limit for Regional Manger to conduct unit visit A.10 crores to fifty crores ,Half yearly B.50 crores to 100 crores, yearly C.100 crores above, half yearly D. 100 crores above yearly E. RM need not visit 37.AF1109 form is also called as A.ADV 43 B.ADV 81 C.ADV 84 D.ADV 44 E. No such form exists 38.Delay in submission of stock statement ADV 44 shall not be more than
A.15 days B. 30 days C. 7 days D.45 days E. 60 days
39.The value in stock in the stock statements shall be cross checked with value mentioned in…….
A. CCR Form II on the respective dates
B.Provisional/Audited balance sheet on the respective dates C.A & B D.Need not be compared E.None of the above
40.Credit officer shall exclude the following stock from fixing drawing power
A. Stock purchased on credit
B.Stock received under Usance LC C. Advance payment guarantee D.A & B E. A, B, & C
41.If the stock hypothecated are spread over at different places in the city the branch official should carry out verification as far as possible 10 PPTO 2019 CREDIT MONITORING PAPER I
A. At different dates B.On the same day C.Borrower should not keep at different places D.At the convenient of branch official E. None of the above
42.In respect of inspection of pledge stock which of the statement is not correct a. The goods shall be inspected at least once in month by the branch official b. The goods shall be inspected at least once in 3 month by the branch Manager c.If the stock are held at different godowns in the city the stock should be verified on different dates d.The name of the bank should be engraved on the pad lock
A. a, b are not correct
B. a ,b & c are not correct C. All are not correct D.Only c is not correct E. None of the above
43. During the inspection of plant and machinery the following aspects shall be examined and observations on the same shall be recorded .
(a) Condition of the machinery – whether there has been any break down since the last inspection and whether any machinery has remained idle - Reasons thereof. (b The time and cost required to put the machinery into working condition. (c) Whether there have been any additions or replacements and if so, details thereof. A. Only A has to be examined
B.Only A & B has to be examined
C. A, B,& C are to be examined
D.None of the above
E. There is no such guidelines
44. The Branch Manager should verify the Inspection register to find out whether all units have been inspected or not once in
11 PPTO 2019 CREDIT MONITORING PAPER I
A.During the first week of every month
B.Every fortnight
C.Bimonthly
D.Quaterly
E Half yearly
45. Which of the following exposure is exempted from reporting CRILC
A. All agriculture Loans
B.Crop loans only
C.Inter Bank Exposure
D.Exposure to NABARD,SIDBI,EXIM Bank & NHB
E.Only B, C. & D exempted
46.The following shall be reported to CRILC
a.Current account balances 100 lakhs and above
b.Red Flaged accounts 50 crores and above
c.Non cooperative borrowers 5 crores above as decided Bank committee
A. Only a is to be reported
B.a & , b are to be reported
C.a, b,& c are to be reported
D. No such rule
E. As per discretion of bank
47.Which of the following Heads ,the validity period of credit limits is not one year
a)Export credit
b)SKCC
c) Synd vyapar scheme
d)ODD 12 PPTO 2019 CREDIT MONITORING PAPER I
e) none of the above
48.Read the following statements and answer the below
a)Annual review/ rating is not required in respect of Agriculure loan & upto 1.00 crore loans of Synd Mortgage,SyndRent &,MSME loans
b) Annual review/ rating is required inrespect of all other term loans above 1.00 crore including Syndmortgage and Synd rent
Which of the above statement are correct
A.Only a is correct B.Only b is correct C.Both a & b are correct D.None of them is correct E.All loans required review/rating
49.Which of the following is not the objective of Bank credit policy
A) Capital driven credit growth
B).Earnings C) Asset quality D)Vertical growth E.None of these
50. Interbank participation certificates are
A. Short term debt instruments
B. Long term debt instruments C.May be short Term or long term D.Money market mutual fund E.None of the above
