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An exposure is unsecured if realisable security is not more than:
A20 per cent
B30 per cent
C40 per cent
D10 per cent
Answer & Solution
Correct answer: D. 10 per cent
1. The comparison is against the outstanding exposure.
2. It is judged at the outset, ab initio.
3. The cut off is 10 per cent.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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