Question

    L oan granted for long duration crops will be treated as

    NPA, if the instalment of principal or interest thereon remains overdue for __________ _ .  
    A One crop season Correct Answer Incorrect Answer
    B Two crop season Correct Answer Incorrect Answer
    C 90 days Correct Answer Incorrect Answer
    D 180 days Correct Answer Incorrect Answer
    E Any of the above, as approved by Board of bank Correct Answer Incorrect Answer

    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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