Inital Actions
What is the first interaction initiated by a bank once a customer bounces on an EMI?
A. Allocation to Field recovery agent
B. Telecaller connects to confirm bounce reason
C. Legal notice is dispatched
D. Digital nudges via SMS/IVR/Email/Whatsapp
D. Digital nudges via SMS/IVR/Email/Whatsapp
What is the primary purpose of early-stage collections in the overall collections process?
A. To recover overdue payments while preventing accounts from escalating to mid or late-stage collections
B. To initiate legal proceedings for overdue accounts
C. To classify accounts as delinquent for further action
D. To negotiate settlement offers with borrowers
A. To recover overdue payments while preventing accounts from escalating to mid or late-stage collections
What does PDD stand for?
A. Payment Due Days
B. Pending Due Date
C. Payable Due Date
D. Payment Due Date
D. Payment Due Date
Which factor is most critical in determining the urgency of the first collections action post-bounce?
A. The customer’s city of residence
B. Risk profile and repayment history of the borrower
C. Loan disbursal channel (online/offline)
D. Day of the week the EMI was due
B. Risk profile and repayment history of the borrower
What is NOT a focus of early-stage collections?
A. Sending reminders for missed payments to encourage timely repayment
B. Educating borrowers about the impact of delinquency on their credit score
C. Offering revised repayment terms or restructuring loans
D. Maintaining a customer-centric approach to preserve relationships
C. Offering revised repayment terms or restructuring loans
Which regulatory body in India provides guidelines for fair practices in debt collection?
A. Securities and Exchange Board of India (SEBI)
B. Reserve Bank of India (RBI)
C. Insurance Regulatory and Development Authority (IRDA)
D. Ministry of Finance
B. Reserve Bank of India (RBI)
Natural calamities/climate conditions are a significant part of collections strategies of which kind of loans?
KGC
What is a common approach used by banks during early-stage collections?
A. Offering reduced settlement amounts
B. Sending personalized communication to borrowers
C. Filing lawsuits for recovery
D. Writing off the debt
B. Sending personalized communication to borrowers
What is the consequence of writing off a debt as a Non-Performing Asset (NPA)?
A. It improves the bank’s profitability
B. It requires provisioning as per regulatory norms
C. It eliminates the need for further recovery efforts
D. It has no impact on the bank’s financial health
B. It requires provisioning as per regulatory norms
What is the typical hold period before a bounced account is manually allocated (to telecaller or field agent), assuming no payment is made after digital nudges?
A. PDD + 3 days
B. PDD + 7 days
C. PDD + 10 days
D. 30 DPD (end of RiskX)
C. PDD + 10 days
7. As per RBI’s Fair Practices Code, when interacting with borrowers, collection agents must:
A. Demand full payment regardless of the customer’s situation
B. Identify themselves and maintain a professional, respectful tone
C. Communicate only through legal counsel
D. Record all conversations without disclosure
B. Identify themselves and maintain a professional, respectful tone