Which of the following defines the term 'Terms of Credit correctly?
(A) Funds which can be withdrawn anytime.
(B) Paper instructing the bank to pay a certain amount.
(C) Assets pledged by the borrowers.
(D) Conditions under which a loan is given.
Answers
Explanation:
RBI/2009-10/84
UBD.BPD (PCB) MC. No. 5 / 13.05.000 / 2009-10
July 1, 2009
The Chief Executive Officers of
All Primary (Urban) Co-operative Banks
Dear Sir / Madam,
Master Circular on Management of Advances- UCBs
Please refer to our Master Circular UBD.BPD (PCB) MC. No.5 /13.05.000 / 2008-09 dated July 1, 2008 on the captioned subject. The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject issued up to June 30, 2009.
Yours faithfully,
(A.K Khound)
Chief General Manager-in-Charge
Encl: As above.
S.No
Contents
1
Background
2
Working Capital Requirements upto Rs.1 crore
3
Working Capital Requirements above Rs. 1 crore
4
Credit Administration
5
Other Guidelines
6
Monitoring of Wilful Defaultors
7
Small and Medium Enterprises(SMEs) and its restructuring
8
Specific Lending Activities
9
Discounting/Rediscounting of Bills by Banks
Annex I - Classification/reporting of data in regard to Assessment of
working capital limits Rs.1 crore
Annex II - Valuation of properties and empanelment of valuers
Annex III- Guidelines for Relief Measures
Annex IV - Format for reporting of borrowal accounts classified
as doubtful,loss for suit filed with outstanding of Rs.1crore and
above to be submitted to RBI
Annex V - Format for reporting of data on wilful Defaulters to RBI
Annex VI - Guidelines on debt restructuring mechanism
for Small and Medium Enterprises (SMEs)
Annex VII - Definition of Micro, Small and Medium Enterprises
Annex VIII - Safeguards to be observed – Advances
against pledge of Gold / Silver ornaments
Appendix - List of circulars consolidated in the Master Circular
MANAGEMENT OF LOANS AND ADVANCES
1. BACKGROUND
1.1 In
Answer:
option B= paper instructing the bank to pay a certain amount.