A substandard asset becomes doubtful after it stays there for:
A36 months
B48 months
C12 months
D24 months
Answer & Solution
Correct answer: C. 12 months
1. The clock starts when it enters the substandard class.
2. One full year in that class moves it on.
3. So the period is 12 months.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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