Banking · RBI Regulatory Guidelines and Disclosure Norms
Consider the following statements regarding banking accounting practices and regulatory guidelines: Statement I: Income from Non-Performing Assets (NPA) can only be recognized on a cash basis, while income from performing assets is recognized on an accrual basis. Statement II: A bank can declare a dividend only after it has fully provided for all its Non-Performing Assets and transferred the mandatory 25% of its net profit to the Statutory Reserve fund. Statement III: Profit on sale of fixed assets must be directly credited to Capital Reserve without passing through P&L. Statement IV: Proposed dividend is disclosed in the 'Notes to Accounts' until approved by shareholders. Statement V: Banks can pay interim dividends without restrictions. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct
- 2Only III, IV and V
- 3Only II and III
- 4Only I, II and IV✓
Correct answer
Only I, II and IV
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