What is branch rc limit

Question

Accepted Answer

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 the branch.
Regular monitoring and review of the branch RC limit is essential to ensure compliance with the set guidelines.

Accepted Answer

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 the branch.

Regular monitoring and review of the branch RC limit is essential to ensure compliance with the set guidelines

Top Cholamandalam Investment & Finance Senior Credit Officer interview questions & answers