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Reserves created to meet outside liabilities are treated how in Tier I?

AInflated
BIndexed
CExcluded
DIncluded
Answer & Solution
Correct answer: C. Excluded
1. Free reserves shown in the audited accounts count as Tier I. 2. But a reserve earmarked against a liability is not free. 3. Such a reserve is excluded from Tier I capital. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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