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Credit control and Credit Monitoring Part 1 Ques
What is the primary objective of credit monitoring in a bank?
Credit monitoring aims to ensure that loan accounts perform as expected post-disbursement, detecting early warning signals of stress to prevent deterioration into NPAs.
What is the meaning of 'sub-standard asset' in RBI's asset classification?
NPA remaining so for up to 12 months.
What is meant by 'end-use verification' in credit control?
End-use verification confirms that loan funds have been utilized for the specific purpose sanctioned, preventing diversion of credit to unintended activities.
What is a 'doubtful asset' under RBI's prudential norms?
Sub-standard asset remaining so beyond 12 months.
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