Module: General Practice
Q31: Scenario: An MSME borrower's loan account with a scheduled commercial bank has the following status as of March 31, 2026: The Due Date was January 1, 2026, and Principal and interest remain unpaid for 95 days. The bank classifies it as a Non-Performing Asset (NPA). The borrower claims that under the "Special MSME Relief," the NPA recognition period is 180 days. Is the borrower correct?
✅ Correct Answer: C
The borrower is incorrect.
For banks and NBFCs, the 90-Day IRAC Norm applies.
An account becomes NPA if interest or principal is overdue for more than 90 days.
While there have been temporary dispensations (like the 180-day window) in the past during specific crises, as of 2026, the standard regulatory baseline remains 90 days to align with global financial stability norms.
For banks and NBFCs, the 90-Day IRAC Norm applies.
An account becomes NPA if interest or principal is overdue for more than 90 days.
While there have been temporary dispensations (like the 180-day window) in the past during specific crises, as of 2026, the standard regulatory baseline remains 90 days to align with global financial stability norms.