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.

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