For an Asset Reconstruction Company (ARC), after how

Solution

• In the context of ARCs, the definition of NPA is slightly different from that used for banks. • An asset is treated as NPA in the books of an ARC if: o Interest or principal (or installment) is overdue for 180 days or more from the date of acquisition or the contractual due date (whichever is later). o Or if overdue for 180 days or more as per the repayment plan formulated by the ARC. o Or if overdue for 180 days or more in case no resolution plan is formulated. • This longer window (180 days) reflects the specialized nature of ARCs, which deal with stressed assets that need restructuring or realization.