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NPA under D3 category (beyond 3 years), how much provision should be maintained;
  • a)
    100% provision both on secured and unsecured portion
  • b)
    40% provision on secured and 100% on unsecured portion
  • c)
    25% provision on secured and 40% on unsecured portion
  • d)
    15% provision on secured and 25% on unsecured portion
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
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NPA under D3 category (beyond 3 years), how much provision should be m...
Under the guidelines provided by the Reserve Bank of India (RBI), for Non-Performing Assets (NPA) categorized under the D3 category (outstanding for more than 3 years), banks are required to maintain provisions. The provisions to be maintained are as follows:
  • For the secured portion of the NPA: Banks should maintain a provision of 25% of the outstanding amount.
  • For the unsecured portion of the NPA: Banks should maintain a provision of 40% of the outstanding amount.
These provisions act as a buffer to cover potential losses and ensure that banks are adequately prepared to absorb any potential default or non-repayment by the borrower. The specific provisioning requirements for different categories of NPAs help banks manage the risk associated with their loan portfolio and maintain financial stability.
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NPA under D3 category (beyond 3 years), how much provision should be maintained;a)100% provision both on secured and unsecured portionb)40% provision on secured and 100% on unsecured portionc)25% provision on secured and 40% on unsecured portiond)15% provision on secured and 25% on unsecured portione)None of theseCorrect answer is option 'C'. Can you explain this answer?
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NPA under D3 category (beyond 3 years), how much provision should be maintained;a)100% provision both on secured and unsecured portionb)40% provision on secured and 100% on unsecured portionc)25% provision on secured and 40% on unsecured portiond)15% provision on secured and 25% on unsecured portione)None of theseCorrect answer is option 'C'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about NPA under D3 category (beyond 3 years), how much provision should be maintained;a)100% provision both on secured and unsecured portionb)40% provision on secured and 100% on unsecured portionc)25% provision on secured and 40% on unsecured portiond)15% provision on secured and 25% on unsecured portione)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for NPA under D3 category (beyond 3 years), how much provision should be maintained;a)100% provision both on secured and unsecured portionb)40% provision on secured and 100% on unsecured portionc)25% provision on secured and 40% on unsecured portiond)15% provision on secured and 25% on unsecured portione)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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