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Order an account's slide into loss

Exercise and reference answers

Steps
  1. Dues stay unpaid past the due date
  2. Overdue crosses 90 days
  3. Account is a substandard NPA
  4. Twelve months later it is doubtful
  5. Security value erodes further
  6. 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_
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