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An amount is treated as overdue when it is not paid on the:
ADraw date
BDebit date
CDated date
DDue date
Answer & Solution
Correct answer: D. Due date
1. The bank fixes a date for every credit facility.
2. Flagging happens in the day-end process for that date.
3. The amount is overdue from the due date itself.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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