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    Question

    If an ad-hoc credit limit sanctioned by a bank is not

    reviewed and the account shows no activity, when does it become an NPA?
    A 60 days Correct Answer Incorrect Answer
    B 90 days Correct Answer Incorrect Answer
    C 120 days Correct Answer Incorrect Answer
    D 180 days Correct Answer Incorrect Answer
    E 240 days Correct Answer Incorrect Answer

    Solution

    As per RBI norms, if ad-hoc/regular credit limits are not reviewed or renewed within 180 days, the account is treated as an NPA. (For CC/OD accounts, “no credits for 90 days” makes it out of order.)

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