2019
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Kotak Mahindra Bank
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Yes Bank
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IndusInd Bank
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Axis Bank
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Detailed explanation-1: -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-2: -* Any amount due to the bank under any credit facility, if not paid by the due date fixed by the bank becomes overdue. “An account should be treated as ‘out of order’ if the outstanding balance remains continuously in excess of the sanctioned limit / drawing power.
Detailed explanation-3: -Standard asset is one which does not disclose any problems and which does not carry more than normal risk attached to the business. Such an asset should not be an NPA.