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Nbfc provision
what is the provision rate on Standard Asset in case of NBFC- .25% or .40%? (applicable in Ca exam)
Replies (3)
Provisioning for Standard Assets
8.14 At present, every NBFC is required to make a provision for standard assets at 0.25% of the outstanding. On a review of the same, the provision for standard assets for NBFCs-ND-SI and for all NBFCs-D, is being increased to 0.40%. The compliance to the revised norm will be phased in as given below:
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0.30% by the end of March 2016
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0.35% by the end of March 2017
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0.40% by the end of March 2018
Source: RBI/2014-15/299 - DNBR (PD) CC.No. 002/03.10.001/2014-15 circular
Link: https://rbi.org.in/scriptts/NotificationUser.aspx?Id=9327
Is this applicable for CA exam or not?
Yes, please read the circular carefully to take note on what kind of assets, provisioning is made at 0.25% and on those at 0.40%.
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