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Sir whether an asset overdue for 4months is a standard or sub standard?
Answers (16)
Aswini Gorige
Standard
If an asset is overdue for 3 months or more it is classified as an NPA then how it will be a standard asset
Non performing asset means, an asset in respect of which, interest has remained overdue for a period of 6 months. Asset which has been classified as non performing asset for a period not exceeding 12 months is called sub standard asset. 75 accounts overdue for 4 months is still classified as standard asset.
Yoga Vishnu
Non performing asset means, an asset in respect of which, interest has remained overdue for a period of 6 months. Asset which has been classified as non performing asset for a period not exceeding 12 months is called sub standard asset. 75 accounts overdue for 4 months is still classified as standard asset.
Sir in material it is given as 3 months for NBFC -D,NBFC-ND SI
Thread Starter
manideep marthaSir in material it is given as 3 months for NBFC -D,NBFC-ND SI
a. If it is systemically important Non deposit taking company and deposit taking company - It is 3 months b. If it is Non systemically important Non deposit taking company - It is 6 months. It depends upon the question and assumption we take.
Thread Starter
manideep marthaSir in question it is given as SI
Then take it as 3 months and proceed with your solution
Yoga Vishnu
Then take it as 3 months and proceed with your solution
Sir. Is the assumption of icai wrong?
Thread Starter
manideep marthaSir. Is the assumption of icai wrong?
Yes. As per NBFC - Systemically important Non Deposit taking company and Deposit taking company (Reserve Bank) Directions, 2016. It must be 3 months.
Yoga Vishnu
Yes. As per NBFC - Systemically important Non Deposit taking company and Deposit taking company (Reserve Bank) Directions, 2016. It must be 3 months.
Sir one more doubt that if it is overdue for 3 months then it is treated as NPA . is it right sir?
Yoga Vishnu
yes
Then in question 550 acc are overdue for 3 months then why it is treated as standard asset rather than sub standard
Thread Starter
manideep marthaThen in question 550 acc are overdue for 3 months then why it is treated as standard asset rather than sub standard
The entire question is calculated by taking NBFC- Non systemically important Non-Deposit taking company directions 2016. So, It took 6 months for NPA classification.
Yoga Vishnu
The entire question is calculated by taking NBFC- Non systemically important Non-Deposit taking company directions 2016. So, It took 6 months for NPA classification.
Sir even in icai material they treated it as standard
Thread Starter
manideep marthaSir even in icai material they treated it as standard
As per the direction given by RBI, if it is exactly 3 months also, it becomes NPA and slips to sub standard. You can quote the same in the exam and consider it as sub standard.
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