Gross stage 3 belongings in non-banking finance firms (NBFC) are loans which have been overdue for greater than 90 days. As NBFC comply with Indian Accounting Standards (Ind AS), they should classify unhealthy loans in three classes or phases. Stage 1 which consists of loans overdue by as much as 30 days, stage 2 the place loans are overdue by 31-89 days, and stage 3 for loans overdue by greater than 90 days. But on November 12, 2021, RBI issued round on the prudent norms on revenue recognition, asset classification, amongst others. This was accomplished after observing that some NBFCs had been upgrading belongings to plain after receiving partial cost.
What are stage 3 belongings in NBFC?
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