NPAs Classification Quiz
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Questions and Answers

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?

  • 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 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)?

    <p>Interest and/or installment of principal remain 'overdue' for more than 90 days</p> Signup and view all the answers

    What action triggers the classification of a bill as a non-performing asset (NPA)?

    <p>The bill remains overdue for more than 90 days from due date of payment</p> Signup and view all the answers

    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.

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    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.

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