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An NPA can be upgraded to standard only when the borrower pays:
AAll arrears
BHalf arrears
CSome arrears
DLate arrears
Answer & Solution
Correct answer: A. All arrears
1. Partial payment is not enough for an upgrade.
2. Where there are several facilities, all must be cleared.
3. The entire arrears of interest and principal must be paid.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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