Question
L oan granted for long duration crops will be treated as
NPA, if the instalment of principal or interest thereon remains overdue for __________ _ .Solution
A loan is generally treated as NPA, if the instalment of principal or interest thereon remains overdue for 90 days . However In the case of Farm Credit extended to agricultural activities :
- 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
- A loan granted for short duration crops will be treated as NPAs, if the instalment of principal or interest thereon remains overdue for two crop seasons .
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