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The provision on the secured part of an asset doubtful up to one year is:
A25 per cent
B35 per cent
C45 per cent
D55 per cent
Answer & Solution
Correct answer: A. 25 per cent
1. Provisioning rises with time spent in the doubtful class.
2. The table starts at the first year.
3. For up to one year the rate is 25 per cent.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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