Banking Norms and NPA Quiz

What does NPA stand for in the context of banking norms?

• Net Profit Analysis

• Non-Performing Assets

• New Policy Amendment

• National Pension Account

What is the criteria for an amount to be considered 'overdue' according to IRAC norms?

• If it is not renewed within 180 days

• If it remains unpaid for a certain period

• If it is not utilized for a continuous period of 90 days

• If it is not paid on the due date fixed by the bank

According to IRAC norms, when does a loan or advance become a Non-Performing Asset (NPA)?

• When it is not utilized for a continuous period of 90 days

• When it is not renewed within 90 days

• When it is not paid on the due date fixed by the bank

• When interest and/or installment of principal remain overdue for more than 90 days

What is the classification of an asset that has remained NPA for a period less than or equal to 12 months?

• Doubtful Asset

• Standard Asset

• Sub-Standard Asset

• Loss Asset

When is an asset classified as Doubtful-2 according to the asset classification norms?

• When it has remained NPA for a period less than or equal to 12 months

• When the realizable value of the security is less than 10% of the outstanding

• When loss has been identified by the bank or auditors

• When it has remained Doubtful for more than 1 year to 3 years

What is the expected realization period for agriculture property and property which is not eligible for sale under SARFAESI?

• 5 Years

• 2 Years

• 3 Years

• 4 Years

What is the purpose of the Digital Platform to track OTS (One Time Settlement) / Compromise cases?

• To increase the interest rates on loans and advances

• To provide transparency and robustness for improved governance

• To provide more flexibility in income recognition

• To reduce the number of non-performing assets

What is the power of extension of validity in OTS proposal vested to the sanctioned authority?

• Upto 6 Months

• Upto 18 Months

• Upto 12 Months

• Upto 3 Months

What is the NPV deviation allowed for non-agriculture securities in case of compromise settlement?

• Not less than last auctioned Reserve Price

• Not less than 50% of the value of security

• Not less than 25% of the value of security

• Not less than 10% of the value of security

What is the power of extension in validity beyond 12 Months in deserving cases and on merits vested to?

• COCC-CGM

• CACB

• MACB

• RMCC-DGM