Q. Consider the following statements:
1.The Reserve Bank of India (RBI) regulates Non-Banking Financial Companies (NBFCs).
2.Non-Performing Assets (NPAs) are classified as standard assets if they remain unpaid for more than 90 days.
Which of the statement(s) given above is/are correct?
Answer: A
Notes:
Explanations –
Statement 1 is correct. The RBI is the primary regulatory authority overseeing NBFCs in India, ensuring they operate within the established financial guidelines and maintain systemic stability.
Statement 2 is incorrect. NPAs are loans or advances where interest or principal payments have been overdue for more than 90 days. Such assets are classified into categories like substandard, doubtful, or loss assets, depending on the duration of non-payment and the asset’s quality. Standard assets are those that continue to generate regular income and are not overdue.
Source: DD News
