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      Question

      According to the revised RBI instructions, when must a

      Tier 1 Urban Co-operative Bank seek RBI’s prior approval to grant unsecured advances?
      A When their CRAR is less than 9% Correct Answer Incorrect Answer
      B When unsecured advances exceed 10% of total assets Correct Answer Incorrect Answer
      C When their gross NPAs exceed 7% Correct Answer Incorrect Answer
      D When the advance is for priority sector loans Correct Answer Incorrect Answer
      E When unsecured advances exceed ₹50 lakh Correct Answer Incorrect Answer

      Solution

      The "Master Circular – Exposure Norms and Statutory Restrictions for UCBs" specifies that UCBs must seek RBI approval when unsecured advances exceed 10% of their total assets.

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