Question
Assets categorized in stage 3 cannot be directly brought
to Stage 1 even after the irregularities are rectified, for how much time bank must keep stage 3 asset in stage 2 before the same can be brought to stage 1?Solution
Banks should keep a stage 3 asset in stage 2 for a minimum period of six months after all the irregularities are rectified (cooling off period) before the same is brought to stage 1.
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