Economics · Economy

Regarding primary security, collateral security, and types of charges in banking operations, consider the following statements: Statement I: In a typical Cash Credit (CC) account, stocks and debtors are primary security, while a piece of land owned by the proprietor and charged to the bank is collateral security. Statement II: According to RBI guidelines, collateral-free loans are mandatory for Micro Enterprises up to 10 Lakh. Statement III: A negative lien is a commitment by the borrower not to create any charge on their assets without the bank's permission, but it is weaker than a mortgage. Statement IV: In a vehicle loan, the charge is created through hypothecation, noted in the Registration Certificate (RC). Statement V: A 'Second Charge' holder can only recover dues after the 'First Charge' holder's dues are fully satisfied. Which of the statements are correct?