UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Money Supply and Indian Financial System

      Consider the following statement:

1. As per recommendations of the Narasimham Committee, it has been decided that credit facilities granted by banks will be classified into perform and non-performing assets (NPA)

2. NPA is a loan which is in default for more than months.

Choose the incorrect statement.

A) 1 only

B) 2 only

C) 1 and 2

D) None of the Above

Correct Answer: B

Solution :

NPA is a loan (whether term loan, cash credit, overdraft, or bills discounted), which is in default for more than six months.