RBIs new debt recast norms are credit positive for banks and will reduce gross NPA by how many basis points following one year

2016

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

RBI’s new debt recast norms are credit positive for banks and will reduce gross NPA by how many basis points following one year

A	10-100
B	20-100
C	30-100
D	40-100

Explanation:

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: -For the above category of banks, an account would be classified as Non Performing Asset if the : (i) Interest and/or installment of principal remain overdue for a period of more than 180 days in respect of a Term Loan.

Detailed explanation-3: -3. Paragraph 10 of the Circular stipulates that loan accounts classified as NPAs may be upgraded as ‘standard’ asset only if entire arrears of interest and principal are paid by the borrower. NBFCs shall have time till September 30, 2022 to put in place the necessary systems to implement this provision.

Detailed explanation-4: -b) Doubtful Assets An asset is classified as a doubtful asset if it remained as an NPA for more than 12 months.

There is 1 question to complete.