True or false about NPA rules

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A term loan is an NPA after 90 days overdue.

2. Statement is true

   No

   Statement

   A short duration crop loan allows one season.

3. Statement is true

   No

   Statement

   Part payment is enough to upgrade an NPA.

4. Statement is true

   Yes

   Statement

   A loss asset left in the books needs full cover.

5. Statement is true

   No

   Statement

   Standard asset provisions cut net NPA.

6. Statement is true

   Yes

   Statement

   Charged property is revalued once in three years.

Instructions

Decide whether each statement is true or false.

Explanation