NPA according to RBI guidelines.
s.loganathan
(Querist) 11 October 2010
This query is : Open
I am placing relevance to RBI guidelines on 'Prudential Norms on Income Recognition, Asset Classification & Provisioning Pertaining to Advances'
extract:
4.2.4 Upgradation of loan accounts classified as NPAs
If arreas of interest and principal are paid by the borrower in the case of accounts classified as NPAs, the accounts should no longer be treated as non-perfofming and may be classified as 'standard' accounts.....
My account was declared NPA and I made subsequent payments to sevice the interest in full and brought the outstanding within the sanctioned limits. Should my account be classified as sub-standard and no longer be treated as non-performing? Or would it be right for the Bank to keep it as NPA?
