Indian Economy·Prelims Strategy

Non Performing Assets — Prelims Strategy

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Version 1Updated 5 Mar 2026

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Prelims Strategy

Focus on memorizing specific numbers: 90-day rule for NPA classification, Rs. 1 lakh threshold for SARFAESI, Rs. 1 crore for IBC, 330-day timeline for CIRP. Learn provisioning percentages: 15% for sub-standard secured, 25-100% for doubtful based on age, 100% for loss assets.

Understand the distinction between gross and net NPAs, and the formula for calculation. Practice questions on SARFAESI Act powers and limitations, IBC process flow, and ARC operations. Pay attention to recent developments like NARCL-IDRCL, IBC amendments, and RBI circulars.

Use elimination technique by identifying obviously wrong options first, such as incorrect timelines or thresholds. Create mental associations: SARFAESI with secured assets, IBC with time-bound resolution, ARCs with security receipts.