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