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    Question

    An asset is classified as NPA if the interest payment is

    overdue for 90 days, from the financial year ending on –
    A March 31, 2000 Correct Answer Incorrect Answer
    B March 31, 2003 Correct Answer Incorrect Answer
    C March 31, 2005 Correct Answer Incorrect Answer
    D March 31, 2004 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    An asset is classified as the Non-Performing Asset if there is no interest payment for a period of 90 days or more. This norm for identification of NPA has come into force from the financial year ending on March 31, 2004. It can happen if the cash credit or overdraft facility is out of order or a bill remains overdue for a period of more than 90 days, in case of the bills purchased and discounted. 

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