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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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