Cholamandalam Investment & Finance Interview Questions, Process, and Tips

Branch RC limit refers to the maximum amount of credit that a branch is authorized to extend to its customers.

• Branch RC limit is set by the senior management based on the branch's financial strength and risk appetite.

• It helps in controlling the credit exposure of the branch and ensures that it operates within its financial limits.

• Exceeding the branch RC limit can lead to increased credit risk and potential losses for t...read more

Dealer RC limit refers to the maximum amount of credit that a dealer is allowed to borrow from a financial institution.

• Dealer RC limit is set by the financial institution based on the dealer's creditworthiness and business needs.

• It helps to manage the risk exposure of the financial institution by limiting the amount of credit extended to a single dealer.

• Exceeding the dealer RC limit may result in additional scrutiny or...read more

Credit policy outlines guidelines for extending credit to customers, while KYC policy ensures customer identity verification to prevent fraud.

• Credit policy is a set of guidelines and procedures that a company follows when extending credit to customers.

• It includes criteria for evaluating creditworthiness, setting credit limits, and managing credit risk.

• KYC (Know Your Customer) policy is a set of procedures for verifying...read more