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A fund made by charging profit rather than appropriating it counts as:

ATier IV capital
BTier VII capital
CTier II capital
DTier III capital
Answer & Solution
Correct answer: C. Tier II capital
1. Such a fund is in effect a provision. 2. So it cannot sit in the core layer. 3. It is eligible only as Tier II capital. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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