Multiple choice

Non-performing Advance means

  1. Non-functional assets

  2. Obsolete assets

  3. Assets transferred to company liquidator

  4. Loans becoming overdue beyond 90 days
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-performing Advances (NPAs) refer to loans or advances where principal or interest payments remain overdue for a period of 90 days or more. The 90-day threshold is the regulatory standard used by Indian banks to classify an asset as non-performing, triggering provisioning requirements and closer monitoring by regulators.

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