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General provisions may be counted in Tier II up to what share of RWA?

A7.25 per cent
B1.25 per cent
C3.25 per cent
D5.25 per cent
Answer & Solution
Correct answer: B. 1.25 per cent
1. Only provisions of a general nature qualify. 2. They must not be tied to an identified loss. 3. The admission ceiling is 1.25 per cent of RWA. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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