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Jan 21 examination ques 3.b How will ICAI classify “75 accounts for 4 months ( Amt overdue 64 lakhs ) as STANDARD ASSET???
Answers (11)
For systematically important non deposit accepting companies a account will be treated as sub standard only if it has been classifies as NPA for a period of more than 12 months. That's why I told you to read the provision. If it's Non systematically important the period is 18 months for it to be classified as sub standard.
Ashwin Kumar
For further reference please read this
Ok. It is less than 12m, but from how many months to 12m, is sub std
Renu Madhav
Ok. It is less than 12m, but from how many months to 12m, is sub std
From being declared as NPA
Ashwin Kumar
For further reference please read this
Yes .. it’s correct..once an standard asset becomes NPA .. it will be classified as sub standard asset for 12 months.. after that it will become doubtful asset.. but my ques is regarding how ICAI classied “75 accounts for 4 months” as standard asset.. How will u classify as an NPA for ND-SI & D nbfc ?
Thread Starter
kowselyaa GYes .. it’s correct..once an standard asset becomes NPA .. it will be classified as sub standard asset for 12 months.. after that it will become doubtful asset.. but my ques is regarding how ICAI classied “75 accounts for 4 months” as standard asset.. How will u classify as an NPA for ND-SI & D nbfc ?
NOOOOO. Once there are no payments towards interest or principle or on demand or call for a period of three months it becomes "NPA" not "SUB STANDARD" if it stays NPA for a period of 12 months or more it becomes "SUB STANDARD" understand the provisions clearly. Your confusing the provisions of banking company with nbfc. In banking an account automatically becomes SUB STANDARD on being classified as NPA. in NBFC an account becomes SUB STANDARD after 12 months or 18 months depending upon SI or NSI becoming NPA. Understand the difference.
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