---
title: "Non-Performing Assets (NPA): Definition | Model Diplomat"
description: "A non-performing asset (NPA) is a loan overdue 90+ days under RBI norms. Covers sub-standard, doubtful and loss categories, provisioning, and GS3 relevance."
url: "https://modeldiplomat.com/learn/glossary/non-performing-assets"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- A non-performing asset is a loan or advance on which the borrower has stopped paying interest or principal for 90 days or more.
- When does a loan become an NPA in India?
- What is the difference between gross NPA and net NPA?
- How are NPAs classified after the 90-day threshold?
- What mechanisms exist to resolve NPAs?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In its Asset Quality Review of 2015, the Reserve Bank of India under Governor Raghuram Rajan forced banks to reclassify hidden stressed loans, lifting reported gross NPAs to about 11.2 per cent by March 2018.

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