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      Question

      What is the provisioning requirement on a loan

      classified as a standard asset and given to an MSME enterprise?
      A 0.25% Correct Answer Incorrect Answer
      B 0.40% Correct Answer Incorrect Answer
      C 1% Correct Answer Incorrect Answer
      D 2% Correct Answer Incorrect Answer
      E No provision Correct Answer Incorrect Answer

      Solution

      RBI mandates a general provision of 0.25% on standard assets extended to MSMEs. This helps banks maintain a buffer for potential future stress, even when the loan is performing.

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