JAIIB · Retail Banking & Wealth Management · Module B — Retail Products and Recovery
JAIIB RBWM Unit 14 — Recovery of Retail Loans: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 4 of the November 2026 cycle (29 November 2026)
This page is a free slice of our JAIIB RBWM question bank for Unit 14 — Recovery of Retail Loans (Module B — Retail Products and Recovery). The Mock Centre holds 81 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
RBWM · Module B81 MCQs in the Mock Centre5 free belowPaper on 29 November 2026
Key facts examiners test from this unit
Repayment design: moratoriums 18m (construction)/3m (ready); education loans exempt from holiday-interest servicing; gold loans = bullet; EMI — principal share RISES over time; 'r' = monthly rate; floating changes hit EMI or tenor.
Default taxonomy: 90 days → NPA; genuine (care & concern) vs wilful (track-record-based; penal provisions at ₹25 lakh+); diversion = use outside sanction terms.
SMA ladder: 0 (1–30), 1 (31–60), 2 (61–90); IRAC norms from Narasimham's Committee on the Financial System.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
When floating rates change, the adjustment happens in:
Why (b): When a floating rate moves, the loan reprices through THE EMI OR THE TENOR: either your monthly amount changes, or the amount stays and the number of months stretches/shrinks.
Question 2 of 5
The SARFAESI Act was passed in:
Why (b): SARFAESI — the Act letting banks enforce security WITHOUT going to court — was passed in 2002.
Question 3 of 5
The objective behind the recovery process:
Why (c): The whole recovery machinery — SARFAESI, DRTs, Lok Adalats, agents — exists for one objective: REDUCING NPAs, turning dead loans back into money.
Question 4 of 5
One-Time Settlements (OTS) are used in retail NPAs because:
Why (b): Time-value and legal-cost arithmetic favour settlement on small accounts: recover most of the dues quickly, release provisioning, redeploy effort.
Question 5 of 5
The DRA (recovery agent) certification involves:
Why (b): RBI professionalised collections: recovery agents must complete IIBF's certificate course — 100 hours of training for non-graduates, 50 hours for graduates — and pass its examination, with behavioural standards attached; the response to coercive-recovery scandals.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
SMA-1
SMA-2
31–60 vs 61–90 days
Substandard
Doubtful
≤12 months vs beyond
Practise all 81 questions on Unit 14. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,912 RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.
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