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An NPA becomes doubtful after it has been substandard for:
A24 months
B36 months
C12 months
D18 months
Answer & Solution
Correct answer: C. 12 months
1. The substandard stage comes first.
2. It has a fixed length before the next step.
3. After 12 months the asset is doubtful.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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