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IBPS Clerk NPA & Recovery — practice questions

Explore 75 free NPA & Recovery questions in IBPS Clerk Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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NPA & Recovery questions and exercises with answers

Showing questions 1–30 of 75.

A term loan becomes an NPA when dues are overdue for more than:Read the answer and worked solution →The SARFAESI Act allows banks to:Read the answer and worked solution →Prudential norms on income recognition follow the recommendations of the:Read the answer and worked solution →Income recognition policy must rest on the record of:Read the answer and worked solution →A term loan turns into an NPA when dues are overdue for more than:Read the answer and worked solution →A loan for a short duration crop becomes an NPA after dues run:Read the answer and worked solution →A loan for a long duration crop becomes an NPA after dues run:Read the answer and worked solution →Who fixes the crop season for each crop in a state?Read the answer and worked solution →A cash credit account is out of order if it exceeds its limit for:Read the answer and worked solution →An amount is treated as overdue if it is not paid on the:Read the answer and worked solution →Into how many categories are non-performing assets classified?Read the answer and worked solution →An asset that has been an NPA for 12 months or less is:Read the answer and worked solution →A substandard asset becomes doubtful after it stays there for:Read the answer and worked solution →An asset identified as uncollectible but not yet written off is a:Read the answer and worked solution →An NPA can be upgraded to standard only when the borrower pays:Read the answer and worked solution →A working capital account goes bad if irregular drawings run for:Read the answer and worked solution →A Central Government guaranteed advance turns NPA only when the:Read the answer and worked solution →A State Government guaranteed advance turns NPA when dues run over:Read the answer and worked solution →The general provision on a substandard asset is:Read the answer and worked solution →An unsecured substandard exposure attracts a total provision of:Read the answer and worked solution →A substandard infrastructure loan account attracts a provision of:Read the answer and worked solution →An exposure is unsecured if realisable security is not more than:Read the answer and worked solution →The provision on the secured part of an asset doubtful up to one year is:Read the answer and worked solution →For an asset doubtful between one and three years the rate is:Read the answer and worked solution →For an asset doubtful for more than three years the rate is:Read the answer and worked solution →A loss asset left in the books must be provided at:Read the answer and worked solution →Standard farm credit and small enterprise loans are provided at:Read the answer and worked solution →Standard advances to commercial real estate are provided at:Read the answer and worked solution →All other standard loans and advances are provided at:Read the answer and worked solution →Provisions on standard assets are treated how for net NPA?Read the answer and worked solution →

Worked practice questions

A term loan becomes an NPA when dues are overdue for more than:

  1. 30 days
  2. 180 days
  3. 60 days
  4. 90 days
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Correct answer: D. 90 days

1. The question asks: A term loan becomes an NPA when dues are overdue for more than. 2. Correct answer: 90 days. 3. An account is NPA if interest or instalment stays overdue beyond 90 days. _Source: BOI Quick Revision — General Banking & Financial Awareness (2020), NPA_

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The SARFAESI Act allows banks to:

  1. Recover dues by selling secured assets
  2. Decide the policy repo rate directly
  3. Print and issue new currency notes
  4. Regulate the insurance companies
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Correct answer: A. Recover dues by selling secured assets

1. The question asks: The SARFAESI Act allows banks to. 2. Correct answer: Recover dues by selling secured assets. 3. SARFAESI lets banks enforce security interest without court action. _Source: BOI Quick Revision — General Banking & Financial Awareness (2020), SARFAESI_

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Prudential norms on income recognition follow the recommendations of the:

  1. Narasimham Committee
  2. Nachiket Committee
  3. Nayak Working Group
  4. Nair Working Group
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Correct answer: A. Narasimham Committee

1. The norms were brought in to match international practice. 2. They came from the Committee on the Financial System. 3. That committee was chaired by Shri M. Narasimham. _Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_

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