Regarding RBI’s guidelines on monitoring credit risk, which of the following statements is/are true?
- Banks should conduct sensitivity tests and scenario analyses, especially for infrastructure projects.
- Certification from borrowers is required to ensure that loan funds are used for intended purposes.
- Auditors must verify and certify end-use of funds if the bank suspects diversion of funds.
1
Only 1
2
Only 1 and 2
3
Only 1 and 3
4
Only 3
5
All of the above