Banking · Credit Risk Management & Prudential Norms
Consider the following statements regarding Credit Risk and RBI Prudential Norms: Statement I: Internal Credit Rating is a mandatory exercise for loan proposals above a specified threshold to determine risk weight and pricing. Statement II: External Credit Rating by agencies like CRISIL or ICRA is only required for retail home loans and is not applicable for large corporate exposures. Statement III: Under RBI's IRAC norms, an account is classified as NPA if interest or installment remains overdue for more than 90 days. Statement IV: Risk-Based Pricing implies charging a higher interest rate to a borrower with higher credit risk. Statement V: Restructuring of a loan account due to financial stress generally leads to the account being downgraded to a 'Sub-standard' category. Which of the following is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct.
- 2Only I, III, IV, and V✓
- 3Only II and III
- 4Only I and II
Correct answer
Only I, III, IV, and V
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