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Revaluation reserves may be counted in Tier I at a discount of:
A35 per cent
B45 per cent
C25 per cent
D55 per cent
Answer & Solution
Correct answer: D. 55 per cent
1. The reserve arises from revaluing the bank's property.
2. Only part of it may be recognised as capital.
3. It is taken at a discount of 55 per cent.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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