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The standard asset provision on farm credit and housing loans is:
A0.75 per cent
B1.00 per cent
C1.25 per cent
D0.25 per cent
Answer & Solution
Correct answer: D. 0.25 per cent
1. Standard assets carry a small general provision.
2. Farm credit, individual housing and SMEs share one rate.
3. That rate is 0.25 per cent.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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