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Provisions for diminution in fair value of restructured accounts are:
ANetted from the limit
BNetted from the ledger
CNetted from the lease
DNetted from the loan
Answer & Solution
Correct answer: D. Netted from the loan
1. The provision covers a restructured standard asset or NPA.
2. It is not allowed to build capital.
3. It is netted from the relative loan asset instead.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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