alleryFloating provisions may be used for netting gross NPAs or Tier II but:
ANot either at all
BNot once at all
CNot both at once
DNot one at once
Answer & Solution
Correct answer: C. Not both at once
1. Floating provisions are not earmarked to any loan.
2. Either use is allowed within the 1.25 per cent ceiling.
3. They cannot be used on both counts together.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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