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C CREDIT DELIVERY
What is the primary objective of credit delivery in Indian banking?
The primary objective of credit delivery is to channelize funds to productive sectors of the economy while ensuring repayment and maintaining asset quality.
What is the Maximum Permissible Bank Finance (MPBF) method used for?
To determine the maximum working capital credit a bank can extend.
What is a Working Capital Demand Loan (WCDL)?
A WCDL is a short-term loan carved out from the Cash Credit limit, usually at a fixed rate of interest, repayable within a stipulated period not exceeding one year.
What is the second method of lending recommended by the Tandon Committee?
Borrower finances 25% of total current assets from own funds.
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