Home › IBPS Clerk › Banking Awareness › NPA & Recovery › A loan for a long duration crop turns NPA after …
A loan for a long duration crop turns NPA after dues run past:
AOne crop season
BTwo crop seasons
CFour crop seasons
DNine crop seasons
Answer & Solution
Correct answer: A. One crop season
1. A long duration crop has a season longer than a year.
2. That single season is already a long wait.
3. So one crop season is allowed.
_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: