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Income recognition policy must rest on the record of:

AReserves
BRecovery
CRevenue
DRollover
Answer & Solution
Correct answer: B. Recovery
1. The policy has to be objective, not a matter of judgement. 2. It cannot rest on subjective considerations. 3. It rests on the record of recovery. _Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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