Is Provision @ 0.25 % of Assets of NBFC Allowable Deduction?

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RBI is regulator for NBFC and in order to to ensure that NBFCs create a financial buffer to protect them from the effect of economic downturns, it has issued circular  RBI/2010-11/370 DNBS.PD.CC.No.207/ 03.02.002/2010-11 dt January 17, 2011 that requires NBFC to create provision of 0.25% for standard assets . A reader Sri Gaurav Chowdhury has…