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A term loan becomes an NPA when dues stay overdue beyond:
A45 days
B90 days
C60 days
D30 days
Answer & Solution
Correct answer: B. 90 days
1. Either interest or principal may be the overdue amount.
2. A fixed period is allowed before the account turns bad.
3. That period is 90 days.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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