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    Question

    What is the maximum period for which a Public Sector

    Bank (PSB) can hold a NonPerforming Asset (NPA) before it must be classified as a loss asset?
    A 60 days Correct Answer Incorrect Answer
    B 90 days Correct Answer Incorrect Answer
    C 120 days Correct Answer Incorrect Answer
    D 180 days Correct Answer Incorrect Answer
    E 365 days Correct Answer Incorrect Answer

    Solution

    According to RBI guidelines, an asset is classified as a NonPerforming Asset (NPA) if it remains overdue for more than 90 days. If it is not recovered within a certain period, it may be classified as a loss asset.

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