Indian Economy·MCQ Practice

Non Performing Assets — MCQ Practice

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Version 1Updated 5 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

Consider the following statements about Non Performing Assets (NPAs) in Indian banking: 1. An asset becomes NPA when interest or principal remains overdue for more than 180 days 2. Agricultural loans become NPAs after one crop season for both short and long duration crops 3. Under SARFAESI Act, banks can take possession of assets without court intervention for dues exceeding Rs. 1 lakh 4. Asset Reconstruction Companies require RBI license to operate Which of the statements given above are correct?

Q2medium

Which of the following best describes the 'Twin Balance Sheet Problem' in the Indian economy?

Q3hard

Under the Insolvency and Bankruptcy Code (IBC), 2016, which of the following statements is/are correct? 1. The Corporate Insolvency Resolution Process must be completed within 270 days 2. Financial creditors and operational creditors have equal voting rights in Committee of Creditors 3. The minimum threshold for initiating CIRP is Rs. 1 crore 4. Homebuyers are classified as financial creditors

Q4hard

Consider the following about provisioning norms for NPAs: 1. Sub-standard assets require 15% provisioning for secured portions 2. Doubtful assets require uniform 50% provisioning regardless of age 3. Loss assets require 100% provisioning 4. Standard assets require no provisioning Which of the above statements are correct?

Q5easy

The National Asset Reconstruction Company Limited (NARCL) and India Debt Resolution Company Limited (IDRCL) structure represents:

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