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    Question

    According to the RBI guidelines, which of the following

    asset classifications represents loans that are considered to be at risk due to a potential threat of non-recoverability?
    A Standard Assets Correct Answer Incorrect Answer
    B Sub-standard Assets Correct Answer Incorrect Answer
    C Doubtful Assets Correct Answer Incorrect Answer
    D Loss Assets Correct Answer Incorrect Answer
    E Non-Performing Assets (NPAs) Correct Answer Incorrect Answer

    Solution

    Loss assets are those that have become irrecoverable due to factors like fraudulent activities, or due to a severe erosion in collateral value. These assets are at high risk and are written off as unrecoverable.

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