Question

From a governance and risk monitoring perspective, what is the significance of requiring Red-Flagged Accounts (RFAs) lingering beyond 180 days to be submitted to the SCBMF?

A It ensures high-level Board oversight and prevents delayed escalation or suppression of potential fraud risks by operational teams
B It automatically waives all legal recovery proceedings against the borrower under SARFAESI
C It transfers the entire loan liability from the bank to the Reserve Bank of India
D It converts the non-performing account into a clean equity instrument
E It allows the bank to avoid reporting the account as a fraud to law enforcement agencies
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