Question

A borrower submits stock of ₹100 crore and debtors of ₹60 crore. Audit reveals slow-moving stock of ₹35 crore and debtors over 180 days of ₹25 crore. Margin prescribed is 25% on both. What is the correct supervisory action?

A Continue DP as submitted
B Reduce DP after excluding ineligible items
C Recall entire limit
D Stop all disbursements
E Classify account as NPA
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