3 Indian & AP Economy and Planning · 3.4.2 Banking and financial inclusion

3.4.2.4 Non-performing assets: classification, twin balance sheet problem and resolution (ARCs, NARCL)

A loan unpaid for more than 90 days is an NPA; India's bad-loan crisis peaked around 2018 and was cleaned up through recognition, recapitalisation, the IBC and recovery laws.

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • NPA
  • SMA
  • substandard
  • doubtful
  • loss asset
  • twin balance sheet
  • SARFAESI
  • DRT
  • ARC
  • NARCL
  • PARA
  • bad bank

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

Read the full note in the app. It is part of the APPSC Group 1 full course in Medha AI. Free in the app: the first chapter of each topic.

Read the full note in the app Indian & AP Economy and Planning questions with answers

All Banking and financial inclusion notes · APPSC Group 1 syllabus · APPSC G1 Paper I Mock 1 with answers · Start free

Medha AI writes its own notes and checks them against the sources listed. Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TSPSC, MPSC, UPSC or any other commission or government body.