New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    If the realisable value of security held by a bank is

    less than what percentage of the exposure, the asset is treated as unsecured (loss asset)?
    A 5% Correct Answer Incorrect Answer
    B 8% Correct Answer Incorrect Answer
    C 10% Correct Answer Incorrect Answer
    D 15% Correct Answer Incorrect Answer
    E 20% Correct Answer Incorrect Answer

    Solution

    According to IRAC norms, if the realizable value of security is less than 10% of total exposure, the asset is treated as unsecured, which calls for 100% provisioning.

    Practice Next

    Relevant for Exams: