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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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