Home › IBPS Clerk › Banking Awareness › Basel Norms & Capital › Excess specific provision on an NPA is treated h…
Excess specific provision on an NPA is treated how for Tier II?
AHalf reckoned
BFully reckoned
CPart reckoned
DNot reckoned
Answer & Solution
Correct answer: D. Not reckoned
1. Such provision may be netted against gross NPAs.
2. That is the only benefit it earns.
3. It is not reckoned as Tier II capital.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
Related questions
The specific risk capital charge on security receipts is:Excess CET1 capital may be used towards compliance with the:Revaluation reserves rejected from CET1 capital may be counted in:The Capital Conservation Buffer applies at the solo level and the:The extra capital charge on a D-SIB must be held as:Which is a D-SIB indicator used by the Reserve Bank?How often does the Reserve Bank disclose the list of D-SIBs?Banks of high systemic importance are designated as: