The . . . . . . . . advance is an advance where payment of interest and/or repayment of installment of principal remain unpaid for a period of two quarters or more.
A. loss
B. doubtful
C. non-performing
D. All of these
Answer: Option B
Solution (By Examveda Team)
Non-Performing Asset (NPA) is a loan or advance where interest and or installment of principal remains overdueIf the dues remain unpaid for a period of two quarters or more that loan is classified as Non-Performing
This means the asset stops generating income for the bank and becomes a financial risk
Therefore the correct answer is Option C (non-performing)
This Question Belongs to Commerce >> Banking And Financial Institutions
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The correct answer is: C. non-performing
An advance is classified as a Non-Performing Asset (NPA) when interest or principal remains overdue for more than two quarters (i.e., 90 days).