NPA GUIDELINES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What does NPA stand for in the context of Indian banking?
NPA stands for Non-Performing Asset, which is a loan or advance where interest and/or principal repayment has remained overdue for a specified period.
What is the time threshold for classifying a term loan as NPA based on interest overdue?
Interest overdue for more than 90 days
As per RBI guidelines, after how many days does a loan account become an NPA for term loans?
A term loan becomes an NPA when interest or principal installment remains overdue for more than 90 days.
What is the full form of SMA-0 in RBI's early warning system?
Special Mention Account with 1-30 days overdue
What is meant by an 'overdue' account under NPA classification norms?
An amount is considered overdue if it is not paid on the due date fixed by the bank, forming the basis for NPA classification.
What is the SMA-1 category under RBI's early warning framework for loans?
Account overdue between 31 to 60 days
How is NPA defined for cash credit or overdraft accounts?
A cash credit or overdraft account becomes an NPA if it remains out of order for more than 90 days, meaning the outstanding balance exceeds the sanctioned limit or no credits are available to cover interest debited.
What is the SMA-2 category under RBI's Special Mention Account framework?
Account overdue between 61 to 90 days
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