As per Reserve Bank of India (RBI), an asset , including a leased asset , becomes NPA (non performing asset) when it ceases to generate income for the bank. BEFORE 2014 Also, it was defined as a Credit Facility in respect of which the interest / installment of principal has remained ' past due ' for a specified period of time. 'Past Due' means amount not been paid within 30 days . And it becomes NPA, if amount not paid within 90 days . FROM & AFTER 2014 As per the new guidelines (26/02/2014) of RBI, before a loan account turns into a NPA, banks are required to identify the stress into the account by creating 3 sub-categories under Special Mention Account (SMA) category . SMA Sub-Categories # Revitalising Distress Assets in the economy -- Guidelines on Joint Lender Forum (JLF) & Corrective Action Plan (CAP)
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