📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      As per RBI's IRAC norms, a term loan becomes a

      Non-Performing Asset (NPA) if interest and/or instalment of principal remains overdue for a period of more than:
      A 30 days Correct Answer Incorrect Answer
      B 60 days Correct Answer Incorrect Answer
      C 90 days Correct Answer Incorrect Answer
      D 180 days Correct Answer Incorrect Answer
      E 365 days Correct Answer Incorrect Answer

      Solution

      An asset becomes non-performing when it ceases to generate income for the bank. Specifically, a term loan is treated as an NPA if interest/principal remains overdue for more than 90 days.

      Practice Next
      ask-question