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A loan for a short duration crop becomes an NPA after dues run:
AOne crop season
BSix crop seasons
CTen crop seasons
DTwo crop seasons
Answer & Solution
Correct answer: D. Two crop seasons
1. Farm loans are not judged by the 90 day rule.
2. They are judged by crop seasons instead.
3. A short duration crop allows two seasons.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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