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The provision on the secured part doubtful beyond three years is:
A100 per cent
B150 per cent
C200 per cent
D300 per cent
Answer & Solution
Correct answer: A. 100 per cent
1. Provisions climb as the asset ages.
2. Past three years no recovery is assumed.
3. The whole secured portion is provided for.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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