Which item is deducted from Tier I capital?
AIntangible assets
BInterbank assets
CInvestment assets
DImmovable assets
Answer & Solution
Correct answer: A. Intangible assets
1. Losses and NPA provision shortfalls are struck off.
2. So is income wrongly recognised on bad accounts.
3. Intangible assets are deducted as well.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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