Multiple Choice Questions (MCQs) on NPA Management

What is the full form of NPA?

• Non-Performing Account

• Non-Performing Asset

• Non-Profit Asset

• Non-Productive Asset

A loan becomes NPA if interest or principal remains overdue for more than ____ days in respect of a term loan.

• 30

• 60

• 90

• 120

As per RBI, a standard asset is one which:

• Has problems

• Is non-performing

• Does not disclose any problem and has normal risk

• Is overdue

An asset which has remained NPA for less than or equal to 12 months is called:

• Doubtful Asset

• Sub-Standard Asset

• Loss Asset

• Standard Asset

Doubtful Asset is one which remained sub-standard for more than:

• 3 months

• 6 months

• 9 months

• 12 months

Loss Asset means:

• Entirely recoverable asset

• Asset identified as loss but not written off

• Standard Asset

• Sub-Standard Asset

The term 'Default' as per IBC means:

• Overpayment

• Non-payment of debt when due

• Delay in documentation

• Restructured debt

The bill purchased and discounted becomes NPA if overdue for more than:

• 30 days

• 60 days

• 90 days

• 120 days

For short duration crops, the instalment is treated as NPA if overdue for:

• One crop season

• Two crop seasons

• Three crop seasons

• None

Early Warning Signal (EWS) and Red Flagged Account (RFA) concepts are applicable for exposure of:

• Rs 50 million and above

• Rs 100 million and above

• Rs 500 million and above

• Rs 5 billion and above