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A loan has been an NPA for 8 months. It is classified as:
ALoss making asset
BStandard asset
CSubstandard asset
DDoubtful asset
Answer & Solution
Correct answer: C. Substandard asset
1. NPA for up to 12 months is the first stage.
2. Eight months is inside that window.
3. So it is substandard.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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