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    • Question

      What does first ‘P’ in the security instrument

      PNCPS, stand for?
      A Participative Correct Answer Incorrect Answer
      B Perpetual Correct Answer Incorrect Answer
      C Preference Correct Answer Incorrect Answer
      D Priority Correct Answer Incorrect Answer
      E Profitable Correct Answer Incorrect Answer

      Solution

      Perpetual Non-Cumulative Preference Shares ( PNCPS ) are a type of preference shares which do not have a redemption date and also do not have a cumulative clause for the dividend. These are treated as part of Tier I capital, as per RBI, for the calculation of capital adequacy of the bank.

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