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      Question

      A loan granted for short duration crops will be treated

      as NPA, if the instalment of principal or interest thereon remains overdue for ________
      A 90 days Correct Answer Incorrect Answer
      B 180 days Correct Answer Incorrect Answer
      C One crop season Correct Answer Incorrect Answer
      D Two crop season Correct Answer Incorrect Answer
      E 360 days Correct Answer Incorrect Answer

      Solution

      A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons. A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season. For the purpose of these guidelines, ā€œlong durationā€ crops would be crops with crop season longer than one year and crops, which are not ā€œlong durationā€ crops, would be treated as ā€œshort durationā€ crops. The crop season for each crop, which means the period up to harvesting of the crops raised, would be as determined by the State Level Bankersā€™ Committee (SLBC) in each State. Depending upon the duration of crops raised by an agriculturist, the above NPA norms would also be made applicable to agricultural term loans availed of by him.

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