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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.
Answer & Solution
Correct Answer:
Option
B
Non-Performing Asset (NPA) is a loan or advance where interest and or installment of principal remains overdue
If 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)
If 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)
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LoginAn advance is classified as a Non-Performing Asset (NPA) when interest or principal remains overdue for more than two quarters (i.e., 90 days).