Home PYQs UPPSC UPPSC MCQs Prelims 2009 (GS Paper I)

Question

Non-performing assets in commercial banks means:

  1. bank deposits which are not invested
  2. capital assets not in use
  3. loans in which interest or principal amount is not recovered.
  4. low-interest rate loans.

Answer:

Option C: loans in which interest or principal amount is not recovered.

Detailed Solution:

The correct answer is “loans in which interest or principal amount is not recovered.”.

Non-performing assets (NPAs) in commercial banks refer to the loans in which interest or principal amount is not recovered.