BANKING AFFAIRS

Detailed explanation-1: -According to the Reserve Bank of India (RBI), an asset (including a leased asset) becomes non-performing when it ceases to generate income for the bank. Any loan or advance that is overdue for more than 90 days will be defined as NPA.

Detailed explanation-2: -Reserve Bank of India defines NPA as any advance or loan that is overdue for more than 90 days. “An asset becomes non-performing when it ceases to generate income for the bank, ” said RBI in a circular form 2007.

Detailed explanation-3: -NPA classification of Credit Card Accounts A credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the payment due date mentioned in the statement.

Detailed explanation-4: -Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

Detailed explanation-5: -2.1.1 An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. A ‘non-performing asset’ (NPA) was defined as a credit facility in respect of which the interest and/ or instalment of principal has remained ‘past due’ for a specified period of time.