Question

A borrower has defaulted on a term loan for over 90 days. The bank categorizes the account as an NPA. Later, the borrower partially repays the overdue amount, but not the entire default. As per RBI norms, how should the account be classified?

A Continue as NPA until full dues are cleared
B Immediately upgrade to standard asset
C Classify as a doubtful asset
D Close the account permanently
E Write off the loan
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