Question
What is the provisioning requirement for a standard
asset for fund based facilities of Farm Credit to agricultural activities, individual housing loans and Small and Micro Enterprises (SMEs) sectorsSolution
The provisioning requirements for all types of standard assets stands as below. Banks should make general provision for standard assets at the following rates for the funded outstanding on global loan portfolio basis: ·        Farm Credit to agricultural activities, individual housing loans and Small and Micro Enterprises (SMEs) sectors at 0.25 per cent; ·        advances to Commercial Real Estate (CRE) Sector at 1.00 per cent; ·        advances to Commercial Real Estate – Residential Housing Sector (CRE - RH) at 0.75 per cent ·        housing loans extended at teaser rates ·        restructured advances – as stipulated in the prudential norms for restructuring of advances. ·        All other loans and advances not included above at 0.40 per cent.
What should be the third sentence after rearrangement?
Choose the correct statement as your answer.
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