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The provision on the secured part of an asset doubtful up to a year is:
A45 per cent
B55 per cent
C25 per cent
D35 per cent
Answer & Solution
Correct answer: C. 25 per cent
1. Rates rise the longer an asset stays doubtful.
2. The first band covers up to one year.
3. That band carries 25 per cent.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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