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

A60 days
B10 days
C90 days
D30 days
Answer & Solution
Correct answer: C. 90 days
1. The test is how long interest or principal stays unpaid. 2. The circular sets a single threshold for a term loan. 3. That threshold is 90 days. _Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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