Statutory Meaning & Definition
A loan or advance where principal or interest payment has remained overdue for more than 90 days (in case of term loan) or the credit facility remains out of order for 90 days (in case of cash credit/overdraft). Banks must provision for NPAs.
Frequently Asked Questions (FAQs)
What is Non-Performing Asset in Indian corporate law?
A loan or advance where principal or interest payment has remained overdue for more than 90 days (in case of term loan) or the credit facility remains out of order for 90 days (in case of cash credit/overdraft). Banks must provision for NPAs.
Why is Non-Performing Asset important for compliance?
Non-Performing Asset is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Non-Performing Asset?
Non-Performing Asset is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to RBI:
RBI Domestic Money Transfer Directions 2026: Cash Pay-Out and Pay-In Limits Explained
Published: 11 November 2026
RBI CTS Cheque Book Change from 31 December 2026 Is Fake: No New Cheque Books from 1 January 2027
Published: 8 November 2026
RBI Priority Sector Lending Draft Directions 2026: Five RE-Wise Drafts, Comments Open Till 26 November
Published: 6 November 2026
Was this article accurate and helpful?
Help us maintain high accuracy standards across corporate law updates.