Home › SBI PO › Banking Awareness › NPA & Recovery › A substandard asset becomes doubtful after it st…
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_
Related questions
An NPA of five crore rupees and above needs a stock audit:A bank may spread the provision for a detected fraud over up to:A state government guaranteed advance turns NPA after dues run past:A central government guaranteed advance turns NPA only when the guarantee is:Provisions on standard assets are not counted while arriving at:The standard asset provision on commercial real estate is:The standard asset provision on farm credit and housing loans is:Loss assets that remain on the books must be provided for at: