Home › IBPS Clerk › Banking Awareness › NPA & Recovery › An asset stays substandard for a period of up to:
An asset stays substandard for a period of up to:
A36 months
B12 months
C18 months
D24 months
Answer & Solution
Correct answer: B. 12 months
1. The clock starts when the account becomes an NPA.
2. After a set period it moves to the next category.
3. That period is 12 months.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
Related questions
An NPA of five crore rupees and above needs a stock audit:A bank may spread the provision for a detected fraud over up to:A state government guaranteed advance turns NPA after dues run past:A central government guaranteed advance turns NPA only when the guarantee is:Provisions on standard assets are not counted while arriving at:The standard asset provision on commercial real estate is:The standard asset provision on farm credit and housing loans is:Loss assets that remain on the books must be provided for at: