RBI1 min read
Non-Performing Asset
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.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. 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.
Q2. 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.
Q3. 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.
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