Answer-How is a non-performing asset (NPA) defined in the context of agricultural loans specifically for lo...

In the case of agricultural loans for long duration crops, a non-performing asset NPA is classified when the instalment of principal or interest remains overdue for one crop season. This means that if the borrower fails to make the required payments for one crop season specifically for long duration crops, the loan will be categorized as an NPA. It is crucial for lenders to closely monitor and manage NPAs to mitigate potential risks and maintain a healthy loan portfolio.

Question

How is a non-performing asset (NP

A defined in the context of agricultural loans specifically for long duration crops?

A The instalment of principal or interest remains overdue for two consecutive crop seasons.

B The instalment of principal or interest remains overdue for one crop season for short duration crops.

C The instalment of principal or interest remains overdue for three consecutive crop seasons.

D The instalment of principal or interest remains overdue for one crop season for long duration crops.

E The instalment of principal or interest remains overdue for one year.

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