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    Question

    As of August 2024, the Reserve Bank of India has expanded the scope of its revised instructions on Bad and Doubtful Debt Reserve (BDDR) to include which categories of co-operative banks, aiming to standardize the treatment of such reserves for prudent financial management?

    A) Urban Co-operative Banks

    B) State Cooperative Banks

    C) Central Cooperative Banks

    A Only A Correct Answer Incorrect Answer
    B Only B Correct Answer Incorrect Answer
    C A and C only Correct Answer Incorrect Answer
    D A and B only Correct Answer Incorrect Answer
    E A, B, and C Correct Answer Incorrect Answer

    Solution

    The RBI's revised instructions, effective immediately, encompass Urban Co-operative Banks (UCBs), State Cooperative Banks (StCBs), and Central Cooperative Banks (CCBs). This initiative aims to rectify and facilitate a smoother transition towards compliance with accounting standards (AS). The banks are required to recalibrate BDDR balances that were formerly adjusted against net profits, now reclassifying these as direct expenses by 31st March 2025.

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