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The provision required on an unsecured doubtful asset is:
A300 per cent
B100 per cent
C150 per cent
D200 per cent
Answer & Solution
Correct answer: B. 100 per cent
1. There is no security worth counting behind it.
2. Nothing can be set against the exposure.
3. The full amount must be provided.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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