CONCEPTS OF PROJECT, ASPECTS OF PROJECT FORMULATION & APPRAISAL & MODEL BANKABLE PROJECTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a 'project' in the context of rural development financing?
A project is a planned set of interrelated activities designed to achieve specific objectives within a defined time frame, budget, and resource allocation, aimed at creating productive assets or generating income.
What is the primary objective of project appraisal in rural banking?
To assess viability and repayment capacity of the project.
What are the key phases of a project life cycle in rural banking?
The key phases are identification, formulation/preparation, appraisal, approval/sanction, implementation, and post-completion evaluation (ex-post evaluation).
What is the payback period in project appraisal?
Time required to recover the initial investment from net cash inflows.
What is project formulation in the context of rural lending?
Project formulation is the process of translating a project concept into a detailed plan, covering technical, financial, economic, social, and managerial aspects to determine feasibility before seeking finance.
What is capital budgeting in the context of rural project appraisal?
Process of planning long-term investments in rural projects.
What does project appraisal mean in rural banking?
Project appraisal is the systematic assessment of a proposed project by the bank to determine its technical soundness, financial viability, economic justification, and managerial capability before sanctioning credit.
What is the term loan component in a rural project cost structure?
Long-term bank loan for fixed assets and capital expenditure.
Video classes for this chapter
More chapters in Module B - Financing Rural Development
Master the full RB syllabus
Every chapter of Rural Banking (Elective) — videos, tests, notes and one-liner decks in one place.