A non-performing assets is ____.

Options

A. Money at call and short notice
B. An asset that ceases to generate income
C. Cash balance in till
D. Cash balance with RBI

Answer

B

Explanation

A non-performing asset (NPA) is defined as a credit facility in respect fo which the interset and/or installment of principal has remined past due for a specified period of time. Once the borrow has failed to make interest of principal payments for 90 days the loan is considered to be a non-performing asset.