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      Question

      Under SARFAESI, a bank can initiate action only after

      the loan account is classified as:
      A Standard Asset Correct Answer Incorrect Answer
      B Restructured Asset Correct Answer Incorrect Answer
      C Non-Performing Asset (NPA) Correct Answer Incorrect Answer
      D Written-off Asset Correct Answer Incorrect Answer
      E Special Mention Account (SMA-0) Correct Answer Incorrect Answer

      Solution

      The bank can use SARFAESI only when the borrower has not repaid the loan and the account has been classified as an NPA.

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