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Which reserve is eligible for inclusion in Tier II capital?

AInvestment Fluctuation
BInterest Fluctuation
CInsurance Fluctuation
DInventory Fluctuation
Answer & Solution
Correct answer: A. Investment Fluctuation
1. It is built under the investment portfolio directions. 2. It cushions the bank against market swings. 3. The Investment Fluctuation Reserve qualifies. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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