Home › IBPS Clerk › Banking Awareness › NPA & Recovery › A loan for a short duration crop turns NPA after…
A loan for a short duration crop turns NPA after dues run past:
AOne crop season
BFour crop seasons
CSix crop seasons
DTwo crop seasons
Answer & Solution
Correct answer: D. Two crop seasons
1. Farm lending follows the crop cycle, not a day count.
2. A long duration crop is given one season.
3. A short duration crop is given two.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
Related questions
An NPA of five crore rupees and above needs a stock audit:A bank may spread the provision for a detected fraud over up to:A state government guaranteed advance turns NPA after dues run past:A central government guaranteed advance turns NPA only when the guarantee is:Provisions on standard assets are not counted while arriving at:The standard asset provision on commercial real estate is:The standard asset provision on farm credit and housing loans is:Loss assets that remain on the books must be provided for at: