DRA Past Assessment Questions PDF

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35. When a customer abuses the bank’s policy and loan repayment system, you should: a. Criticize the bank’s policy yourself b. Should back at him c. Clear the customer’s doubts about the policies in a courteous manner d. Warn the customer about sending legal notice 36. How would you explain the consequences of not paying the EMI in time, to a customer who is a first time defaulter? a. Threaten to send a legal notice b. Tell him that the bank will confiscate his assets and property c. Explain him how his future borrowings will get very difficult d. Tell him that you will keep visiting him till he repays the loan 37. Communication is of: a. Three types b. Two types c. One types d. Four types 38. In a bansker-customer relationship, a banker: a. Is always a debtor b. Is always a creditor c. Can be debtor and/ or creditor d. Can be debtor or creditor 39. Having good inter-personal relation with a person means: a. Having a disconnect with that person b. Having a bitter relationship with that person c. Having enmity with that person d. Establishing a rapport with that person

40. If a customer is unwilling to pay the recovery agent: a. Should use physical violence as a last resort measure b. Should threaten the customer verbally c. Should intimidate the customer by body language d. Should not do any of the above 41.Borrower in his office, you come across his boss, who asks you to identify yourself and the purpose of your visit. You should: a. Give details about the default status b. Disclose only your name and company name c. Avoid disclosing anything and go away without answering anything d. Disclose your name only and indicate the purpose as personal 42. For re-possessing the security the creditor a. Cannot authorise a collection agency b. Should not authorise a collection agency c. Can authorise a collection agency d. Must authorise a collection agency 43. Non- verbal communication is: a. Spoken English b. Body language c. Words used in writing d. Sign language 44.For collecting dues, Debt recovery Agents generally adopt three months namely:

a. first contact and follow up, through phone, second through letters and last through direct contact by visiting the debtors b. first through letters, second through contact and follow up through phone and last through direct contact by visiting the debtors

c. first contact and follow up through phone, second through letters and last through direct contact by visiting the creditors d. first through letters, second 45. Timings of visiting customer: a. Can be anytime as per the convenience of the recovery agent b. Can under no circumstances before or later than 07.00hrs - 21.00hrs c. Is fixed between 07.00hrs to 21.00 hrs only d. Can be earlier or later than 07.00hrs to 21.00 only under certain circumstances. 46. Banks may accept Xerox copies of ID Proof documents without verification with original thereof and open new accounts: a. True b.false 47. If banker makes an unwarranted disclosure of the status of account of the bank’s customer: a. The customer has to plead to the bank to change its stance b. The banker becomes liable to compensate the customer c. The banker is within its rights to do so d. The customer has to ignore it reset answer 48. Required particulars of receivables to be collected is given by the: a. Principal to the debtor b. Principal to the agent c. Debtor to the agent d. Creditor to the debtor 49. The foremost duty of recovery agent is: a. Follow instructions of the customer b. Follow instructions of the principal c. Follow instructions of the debtor d. Follow instructions of co-worker

50. Normally agent has to follow instructions from the principal. However, when instructions are silent: a. Agent has to follow commercial customs and industrial practice b. Agent can perform according to his decision c. Every time instructions are supposed to be obtained invariable d. There cannot be such occasion where instructions are silent 51. The parties in a Debt Recovery Agent contract are: a. The DRA and the Bank b. The DRA, the bank and all customers of the bank c. DRA, the bank and only defaulting customers d. The DRA, the bank and the bank’s borrower 52. Communication means exchanging information between at least: a. Four persons b. Five persons c. Three persons d. Two persons 53. Physical violence may be used by Debt Recovery Agents: a. After exhausting all sorts of decent approach towards the recovery, the DRA may adopt this procedure for the recovery of the hard core bank dues b. Under no circumstances any kind of physical violence by DRA should be carried out c. When the debtors resorts to and initiates such physical encounters. d. May be resorted under video recording being exercised during the recovery process. 54. Sub- Standard assets is one which has remained: a. NPA for a period less 12 months but more than 3 months b. NPA for period more than 12 months but less than 3 months c. NPA for period more than 3 months but less than 12 months

d. NPA for a period upto 12 months but more than 3 months 55. If the recovery agent is not attentive to what the debtor is saying, the agent may hear but may not: a. Listen to what the debtor is saying b. Feel what the debtor is saying c. See what the debtor is doing d. Think what the debtor is not saying 56. When an account is opened with a bank there is an implied contract between the bank and the customer that: a. The bank is free to divulge any information they want b. The bank will not disclose information relating to the customer’s account without the customer’s consent c. The bank will have to seek prior information before divulging any information d. The bank under no circumstance will divulge information relating to the customer’s account 57. The debt recovery agent is legally entitled to collect specified receivables from the debtors on behalf of the principle in terms of a. Loan agreement and debt collection agency agreement b. Oral agreement c. 60 days d. Indian Contract Act 58. An agent in the case of negotiation settlement is entitled to: a. No free b. A fixed percentage fee c. None of the options d. A flat fee 59. Duty to render account means: a. An agent is bound to render proper accounts to his principal on demand

b. An agent is bound to pay all the sums received by him on behalf of the principal c. An agent is bound to communicate his principal whenever there is some doubt or difficulty and act as per principle’s wishes rather than do 60. The purpose of communication to create: a. Doubt b. Tolerance c. Misunderstanding d. Understanding 61. If charged assets do not exists or the debt is unsecured: a. The debtor will be acquitted from paying the dues b. The debtor will be exonerated from paying the dues c. The debtor will have to be used for recovery of the dues d. The debtor will be pardoned from paying the dues 62. Money laundering is attempted by international terrorist organisations, drug operators and other criminals a. True b. False 63. A copy of the notice sent by the bank earlier to the defaulting borrower should: a. Not be provided to anybody b. Be provided to the agent c. Be provided to the bank d. Be provided to the defaulting borrower

69. Non NPAs are characterised by a. Non servicing of principal on time

b. Servicing of principal on time c. Servicing of interest and principal on time d. Non servicing of interest and principal on time 70. Listening leads to proper: a. Understanding b. Negotiations c. Misunderstanding d. Empathy 71. Money laundering means: a. Conversion of fixed assests into cash b. Conversion of cash into gold c. Conversion of dollar into indian rupee d. Fund generated by illegal means being routed into legal channels 72. If a customer offers you an expensive the watch, you should: a. Request him to deliver or leave the watch to your b. Turn down the offer and report to bank c. Feel much excited and accept it d. Ignore the offer 73. From the below Sub-standard assets the least difficult to recover would be: a. One with a default period of 121 days b. One with a default period of 181 days c. One with a default period of 151 days d. One with a default period of 91 days

74. Should the customer refuse to pay on the A/c, such A/c must be ‘First referred to: a. Branch Manager of the Bank

b. Supervisor of the DRA c. Zonal office of the Bank d. Bank head office 75. Illegal money refers to a. Money earned by NRIs b. Money Generated out of activities which are prohibited by law c. None of the above d. Foreign countries like dollar sterling pounds etc. 76. In which loan fortnightly repayments are accepted? a. Loans for purchase of consumer durables b. Home loans c. Personal loans d. Auto rickshaw loans 77. What will be the sample interest payable on principal of Rs.50000 for a month and rate of interest at 12%? a. 5000 b. 6000 c. 4000 d. 3600 78. A debt recovery agent can: a. Collect the dues on behalf of the principal b. Waive debt to some extent in all cases c. Reduce the rate of interest charged to debt d. Postpone the recovery

79. The bank is required to advise the recovery agents: a. Total client details of the bank b. Total liabilities of the bank

c. Total assets of the bank d. Policy, practice, and procedure of the bank 80. When a banker renders additional services the banker-customer relationship is that of : a. A debtor-creditor where the banker is creditor and customer is debtor b. A debtor-creditor where the banker is debtor and customer is creditor c. Agent- Principal where the banker is agent and customer is principal d. Agent-Principal where the banker is principal and customer is agent 81. Showing impatience or haste while listening to the debtor may cost the debt recovery agent a. Time b. Important information c. Money d. Nothing 82. Money earned by indulging in corruption is : a. Illegal money b. Legal Money c. Legal tender lent d. Illegal money 83. Duty to remit means: a. An agent cannot further delegate his authority unless he is so permitted b. An agent is bound to render proper accounts to his principal on demand c. An agent is bound to pay all the sums received by him on behalf of the principal d. An agent is bound to communicate his principal whenever his principal whenever there is some doubt or difficulty and act as per principle’s wishes rather than do whatever he feels like 84. When you don’t understand a question, then: a. Remain silent and act as if you have understood

b. Avoid answering the question c. Answer the question with whatever comes to your mind d. Ask the debtor to explain the question again 85. As a Debt Recovery Agent, you visit a defaulting borrower at his shop. He is discussing business with his suppliers. You intrude and identify yourself and the purpose for which you have come, in front of his visitors. a. Your behaviour is appropriate b. All of the mentioned options c. You should not have disclosed your identity d. Your behaviour is appropriate 86. A banker while making disclosures of a customer’s accounts: a. Can give information to any person relevant or irrelevant to the matter b. Can give information based on hearsay c. Has to take proper precautions while making the disclosure d. Can make the disclosures without maintaining any secrecy 87. Debt recovery agreement like any other contract requires a. Acceptance by the principal and defaulting borrower b. Acceptance by the defaulting borrower and agent c. Acceptance by the principal and agent d. Acceptance by the principal defaulting borrower and agent 88. In case of a borrower who is heavily indebted, which of the following would not be an ideal approach for a DRA with respect to recovery counselling? a. Advise the borrower to have a series of talks with the bank for arriving at some negotiation b. Advise the borrower to approach another financial institution to arrange for another credit so as to liquidate the existing debt c. Advise the debtor to consolidate his debts d. Advise the debtor to prioritize his debts

89. On violation of the RBI directives and guidelines: a. RBI takes a serious view and but does not impose ban/penalties on violating entities b. RBI does not take a serious view but can impose ban/penalties on violating entities c. RBI takes a serious view and can impose ban/penalties on violating entities d.RBI takes a serious view and can impose ban/penalities on violating entities 90. At the end of the call, the Debt Recovery Agent should: a. Summarize the gist of the talks to the customer b. None of the mentioned options c. Remind about the reason for his visit to the debtor d. Remind the customer about the legal consequences 91. KYC compliance is in respect of a: a. Only new non-resident customers b. All new and existing domestic and non-resident customers c. Only new domestic customers d. Only existing domestic and non resident customers 92. Performing assets are known so as they: a. Yield regular interest and return the due principal to the customer b. Yield regular interest to the bank c. Yield regular principal to the bank d. Yield regular interest and return the due principal to the bank 93. The collection strategy has to be: a. Recovery by visiting in a group b. Different for each other c. Repeated visits d. Same for all debtors 94. Listening refers to:

a. Observing the body language of the person who is speaking b. All of the mentioned options c. Observing the facial expression of the person who is speaking d. Hearing what the other person is saying 95. A bank is required to obtain an opinion report on a customer: a. when the customer comes to close the account with the bank b. when the bank is getting money from the customer as deposits c. when the customer comes to open an account with the bank d. when the bank is considering to extend credit facilities to a new person who has deposit accounts with other banks 96. While talking to the customers you realize that you have missed listening to some information that he has said. In such a case you would: a. Not ask him to repeat what he said b. Politely ask him to repeat himself c. Rudely stop the conversation and ask him to repeat himself d. Continue as if nothing happened 97. A customer is asking you to explain how EMI is calculated over the phone and you explain it. But he is not able to understand. He asks you to re-explain the process in such a case you would: a. Repeat it once as quickly as possible and then cut the call even if he doesn’t understand b. Ask him to call back later c. Explain the process as long as it takes for him to understand d. Transfer the call to your colleague and ask him to explain

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