BP · VIDEOLECTURE

JLG Farmer Club ,NEF ,Willful Default, NPA SARFAESI

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.

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Q

What is a Joint Liability Group (JLG) in the context of agricultural lending?

A

A JLG is an informal group of 4–10 individuals, usually small/marginal farmers, who come together to avail bank loans jointly and are mutually liable for repayment of each other's loans.

Q

What is the minimum loan amount threshold for reporting a willful defaulter to Credit Information Companies?

A

Borrowers with outstanding of Rs. 25 lakh and above

Q

What is the primary purpose of forming a Farmer Club under NABARD's guidelines?

A

Farmer Clubs are formed to act as a link between banks and rural borrowers, facilitating credit flow, disseminating technology, and building financial literacy among farmers at the village level.

Q

What is the maximum loan amount a JLG member can individually avail without collateral?

A

Up to Rs. 50,000 per member typically

Q

What does NEF stand for in the context of rural banking?

A

NEF stands for Non-Encumbrance of Farming assets, commonly discussed in the context of providing clean-title collateral-free loans to farmers through JLG and SHG mechanisms.

Q

Under which Act are willful defaulters barred from accessing capital markets?

A

SEBI regulations under Securities Contracts Regulation Act

Q

Who promotes the formation of Farmer Clubs in India?

A

NABARD promotes and finances the formation of Farmer Clubs (also called Vikas Volunteer Vahini or VVV) through commercial banks, RRBs, and cooperative banks across rural India.

Q

How many years must a Sub-Standard Asset remain NPA before it becomes a Doubtful Asset?

A

More than 12 months as NPA

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