Podcast
Questions and Answers
When is a Direct Agricultural loan considered a non-performing asset (NPA) for short duration crops?
When is a Direct Agricultural loan considered a non-performing asset (NPA) for short duration crops?
- When the bill remains overdue for more than 90 days
- When the Interest or instalment remains overdue for 2 crop seasons (correct)
- When the loan is not reviewed within 180 days
- When stock statement has not been received for more than 90 days
What is considered a non-performing asset (NPA) for a Cash Credit or Overdraft Account?
What is considered a non-performing asset (NPA) for a Cash Credit or Overdraft Account?
- When the limit is not reviewed within 180 days
- When the account remains 'out of order' for more than 90 days (correct)
- When stock statement has not been received for more than 90 days
- When the bill remains overdue for more than 90 days
When can credit facilities backed by the Guarantee of Central Govt. be treated as a non-performing asset (NPA)?
When can credit facilities backed by the Guarantee of Central Govt. be treated as a non-performing asset (NPA)?
- When the Govt. repudiates its guarantee (correct)
- When the loan is not reviewed within 180 days
- When stock statement has not been received for more than 90 days
- When the bill remains overdue for more than 90 days
What condition must be met for a loan account to be considered a non-performing asset (NPA)?
What condition must be met for a loan account to be considered a non-performing asset (NPA)?
What action triggers the classification of a bill as a non-performing asset (NPA)?
What action triggers the classification of a bill as a non-performing asset (NPA)?
Study Notes
Non-Performing Assets (NPA)
- A Direct Agricultural loan is considered a non-performing asset (NPA) for short duration crops when the installment of principal or interest remains overdue beyond 2 crop seasons.
- A Cash Credit or Overdraft Account is considered a non-performing asset (NPA) if the account remains out of order for a period of 90 days.
- Credit facilities backed by the Guarantee of Central Govt. can be treated as a non-performing asset (NPA) when the guarantee is invoked and the borrower fails to repay the debt.
- A loan account is considered a non-performing asset (NPA) when the interest and/or installment of principal remain overdue for a period of 90 days or more.
- A bill is classified as a non-performing asset (NPA) when the bill remains overdue for a period exceeding 90 days from the due date.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of non-performing assets (NPAs) with this quiz. Learn about the criteria for classifying loans and advances as NPAs, including overdue interest and principal payments, and out-of-order cash credit or overdraft accounts.
