The Hindu Business Line : Classified NPAs out of 90-day norm: RBI

THE Reserve Bank of India has made it clear to the auditing community that the tighter non-performing asset (NPA) norm for banks has become effective from March 31.

It has now clarified on the application of the new norm.

The Central Bank has held that, with effect from March 31, a loan or an advance, other than agricultural advances, would be a NPA if interest and/or instalment of principal remain overdue for a period of more than 90 days.

In a communiqué to the Institute of Chartered Accountants of India (ICAI), the RBI has held that any asset classification done by the bank on any date up to and inclusive of March 30 would adopt the 180-day delinquency norm.

From March 31 onwards, the bank will adopt the 90-day delinquency payment norm.

Informed sources said that the RBI has also held that the 90-day norm should not be applied to accounts already classified as NPA before March 31.

It has also held that there would be no need to re-work the asset classification status of account, which has become NPA before March 31, while applying the 90-day norm on March 31.

More Stories on : Non-Performing Assets | RBI & Other Central Banks

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Classified NPAs out of 90-day norm: RBI