Question
According to RBI’s prudential norms, what is the
general provisioning requirement for substandard assets (ignoring ECGC guarantee cover and securities available)?Solution
Under RBI’s Income Recognition and Asset Classification (IRAC) norms, banks are required to make general provisions against non-performing assets (NPAs). For substandard assets (i.e., accounts classified as NPAs for less than or equal to 12 months): • A general provision of 15% of the total outstanding is mandated. • This provision is calculated without considering any ECGC (Export Credit Guarantee Corporation) guarantee cover or the value of securities available. • The intent is to create a buffer against potential losses, ensuring that banks remain adequately capitalized and risk-resilient. Therefore, the required general provision is 15%.
The Command Area Development & Water Management (CADWM) Program was started as a Centrally Sponsored Scheme in the year 1974-75 with the objective to br...
Plant’s ability to chemically inhibit the growth of other plants is calledÂ
Suitable mechanical soil moisture conservation technique for dryland areas
Given below are two statements, one is labelled as Assertion A and other is labelled as Reason R
Assertion A: The temperature increases with incr...
Smog is produced due to
Removal of small buds to obtain the bigger flowers is called asÂ
The absolute density of soil is also referred to as __________________ which is generally 2.60-2.75 gm/cmᶾ
Which of the following rice cultivation methods is most water-use efficient and being increasingly adopted to address water scarcity?
Which of the following is NOT a Kharif season weed?
Black soil is used for the cultivation ofÂ
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