Question

    A substandard asset is such that it has remained in the

    NPA status for a period of less than or equal to ____________ .
    A 3 months Correct Answer Incorrect Answer
    B 6 months Correct Answer Incorrect Answer
    C 12 months Correct Answer Incorrect Answer
    D 18 months Correct Answer Incorrect Answer
    E 24 months Correct Answer Incorrect Answer

    Solution

    A substandard asset is such that it has remained in the NPA status for less than or equal to 12 months. If the asset is in the substandard class for a period of less than or equal to 12 months, it is termed as a doubtful asset whereas a loss asset is such that it has been identified as being in loss by the bank or the external auditors or the RBI inspection team but the amount has not been written off completely from the books of the bank. 

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