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The standard asset provision on commercial real estate is:
A1.00 per cent
B0.25 per cent
C0.40 per cent
D0.75 per cent
Answer & Solution
Correct answer: A. 1.00 per cent
1. Commercial real estate is treated as the riskiest standard bucket.
2. It carries the highest of the ordinary standard rates.
3. That rate is 1.00 per cent.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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