Classified NPAs out of 90-day norm: RBI
New Delhi: The Reserve Bank of India 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.

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.
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