Question

Assertion (A): A loan overdue for more than 90 days is classified as an NPA.
Reason (R): RBI’s prudential norms define NPAs to protect banks and depositors.

Choose the correct option:

• A. Both A and R are true and R explains A
• B. Both A and R are true but R does not explain A
• C. A is true, R is false
• D. A is false, R is true

Answer 1

Answer:

A. Both A and R are true and R explains A

RBI’s prudential norms clearly define 90 days overdue as the benchmark for classifying NPAs to ensure financial stability.