Order an account's slide into loss
Exercise and reference answers
- Steps
- Dues stay unpaid past the due date
- Overdue crosses 90 days
- Account is a substandard NPA
- Twelve months later it is doubtful
- Security value erodes further
- It is written off as a loss asset
- Instructions
- Tap the stages in the order they occur.
Explanation
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_