General Studies · Loan Recovery & Management
What is the primary objective of a bank's Recovery Policy when dealing with a defaulting Retail Loan customer prior to initiating aggressive legal action?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1To maximize immediate collection by seizing the collateral and conducting an emergency auction.
- 2To explore all feasible options for re-scheduling the loan or offering a settlement to restore the account to the Standard category.✓
- 3To permanently blacklist the customer immediately and notify all global credit bureaus.
- 4To transfer the loan account to an Asset Reconstruction Company (ARC) immediately for securitization.
Correct answer
To explore all feasible options for re-scheduling the loan or offering a settlement to restore the account to the Standard category.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Loan Recovery & Management MCQs →Want more practice questions on Loan Recovery & Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Loan Recovery & Management