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_
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