CAIIB ABM Module C Unit 6 : Credit Control and Monitoring

12/08/2023

CAIIB Paper 1 ABM Module C Unit 6 : Credit Control and Monitoring (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 1 (Advanced Bank Management) includes an important topic called “Credit Control and Monitoring”. Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.

In this article, we are going to cover all the necessary details of CAIIB Paper 1 (ABM) Module C (CREDIT MANAGEMENT) Unit 6 : Credit Control and Monitoring, Aspirants must go through this article to better understand the topic, Credit Control and Monitoring and practice using our Online Mock Test Series to strengthen their knowledge of Credit Control and Monitoring. Unit 6 : Credit Control and Monitoring

Important and Purpose

Credit control and monitoring, often referred as Loan Review Mechanism (L R M), plays an important role in the following aspects:

To ensure that the funds provided by the bank are put to the intended use and continue to be used properly.
To ascertain that the business continues to run on the projected lines.
If the deterioration of the business continues despite appropriate action, the bank should decide if any harsh action like, recalling the advance or seizing the security, etc. is necessary.

Available Tools for Credit Monitoring / LRM

Conduct of the Accounts with the Bank
Periodic Information Submitted as per the Terms of the Advance
Audit of Stocks and Receivables Conducted by the Bank
Financial Statements of the Business, Auditors’ Report
Periodic Visits and Inspection
Interaction
Periodic Scrutiny
Market Reports about the, Borrower and the Business Segment
Appointing Bank’s Nominee on Company’s Board
Credit Audit
Document Audit of title documents in respect of large value loan accounts (RBI circular dated June 7, 2013)