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Loss assets that remain on the books must be provided for at:
A200 per cent
B300 per cent
C100 per cent
D150 per cent
Answer & Solution
Correct answer: C. 100 per cent
1. Such assets should normally be written off.
2. If they stay on the books nothing is assumed recoverable.
3. The outstanding is fully provided for.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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