alleryA substandard infrastructure loan account attracts a provision of:
A50 per cent
B60 per cent
C20 per cent
D40 per cent
Answer & Solution
Correct answer: C. 20 per cent
1. Infrastructure lending has escrow safeguards.
2. So it is treated more leniently than other unsecured cases.
3. It attracts 20 per cent instead of 25 per cent.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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