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Credit control and monitoring
What is the primary purpose of credit monitoring in a bank?
Credit monitoring ensures that loans are being used for the intended purpose and that the borrower's financial health remains sound, enabling early detection of potential defaults.
What is the meaning of 'credit control' in banking?
Process of managing and regulating credit sanctioned to borrowers.
What is a loan review mechanism (LRM) in the context of credit control?
Loan Review Mechanism is an independent, ongoing review of credit quality conducted by the bank to identify weaknesses in individual accounts and ensure adherence to credit policies and RBI guidelines.
What is 'post-disbursement credit monitoring' in banks?
Surveillance of loans after funds are released to borrowers.
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