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A working capital account goes bad if irregular drawings run for:
A10 days
B90 days
C30 days
D60 days
Answer & Solution
Correct answer: B. 90 days
1. This applies even if the unit is still working.
2. It applies even if the borrower looks sound.
3. A continuous 90 days of irregular drawings does it.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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