Question

what is non banking assets​

Answer 1

Answer:

this is the answer..

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Answer 2

Answer:

Loans or advances that are in default or in arrears are classified as nonperforming assets (NPAs). When principle or interest payments are late or missing, a debt is in arrears. When the lender believes the terms of the loan have been violated and the borrower is unable to fulfill his responsibilities, the loan is in default.

Explanation:

Non-banking assets​:

• A loan or advance for which the principal or interest payment was past due for 90 days is referred to as a non-performing asset (NPA). Banks must further categorize non-performing assets (NPAs) into Substandard, Doubtful, and Loss assets.
• Insurance companies, venture capitalists, currency exchanges, some microloan groups, and pawn shops are a few examples of nonbank financial institutions. These non-bank financial organizations compete with banks, offer services that aren't always fit for banks, and focus on certain industries or demographics.

Banks must further categorize non-performing assets (NPAs) into Substandard, Doubtful, and Loss assets:

• Substandard assets are those that have been non-performing for less than or equal to 12 months.
• 2. Assets that are questionable: An asset is deemed questionable if it has stayed in the subpar category for a continuous 12-month period.
• 3. Loss assets: According to the RBI, a loss asset is one that is "considered uncollectible and of so low value that its continuation as a bankable asset is not merited," even though it may have some salvage or recovery potential.
• Additional References: Foreign Exchange Reserves, Base Rate