Question

Which of the following is true regarding the Reserve Bank of India's prudential norms for income recognition, asset classification, and provisioning for banks' advances portfolio?

A The policy of income recognition should be subjective and based on record of recovery.

B The classification of assets of banks has to be done on the basis of subjective criteria to ensure a uniform and consistent application of the norms.

C The provisioning should be made on the basis of the period for which the asset has remained non-performing and the availability of security and the realizable value thereof.

D Banks are not required to fix realistic repayment schedules on the basis of cash flows with borrowers.

E The prudential norms are not aimed at improving consistency and transparency in the published accounts.

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