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A loan for a long duration crop becomes an NPA after dues run:
AOne crop season
BTwo crop seasons
CSix crop seasons
DTen crop seasons
Answer & Solution
Correct answer: A. One crop season
1. A long duration crop has a season longer than a year.
2. It therefore gets less latitude in seasons.
3. One crop season overdue makes it an NPA.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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