New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    What provision is required for substandard

    infrastructure loan accounts?
    A 15% Correct Answer Incorrect Answer
    B 20% Correct Answer Incorrect Answer
    C 25% Correct Answer Incorrect Answer
    D 30% Correct Answer Incorrect Answer
    E 100% Correct Answer Incorrect Answer

    Solution

    Asper RBI circular & guidelines, substandard infrastructure loan accounts attract a provisioning of 20% instead of the usual 25% prescribed for substandard assets. However, certain safeguards such as escrow accounts must be in place to avail of this lower provisioning.

    Practice Next

    Relevant for Exams: