An asset becomes non-performing when it ceases to generate income for the bank. For banks, the primary income-generating assets are the loans and advances they extend. According to Reserve Bank of India (RBI) guidelines, a loan is generally classified as an NPA if the principal or interest payment is overdue for a period of 90 days.
'Non-performing Assets' (NPA) of Indian Commercial Banks are
Asked in WBPSC CS Prelims 2020 · Topic: Money & Banking (Banking Sector Reforms: Basel Norms, Asset Quality Review (AQR), and NPA Management)
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