BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
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the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
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the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
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All of the above
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Detailed explanation-1: -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-2: -A non-performing asset (NPA) is a classification used by financial institutions for loans and advances on which the principal is past due and on which no interest payments have been made for a period of time.
Detailed explanation-3: -It is an agency of the United States federal government whose mission is to protect human and environmental health. Headquartered in Washington, D.C., the EPA is responsible for creating standards and laws promoting the health of individuals and the environment.
Detailed explanation-4: -Banks are required to classify nonperforming assets into one of three categories according to how long the asset has been nonperforming: sub-standard assets, doubtful assets, and loss assets. A substandard asset is an asset classified as an NPA for less than 12 months.