Question ID : 38082

Agriculture loan

Two agriculture Loans of same amount one for Long term Crop and other for Short term crop are given on 1-4-2017 Interest as well Principal are pending /Not adjusted When will they become NPA

Answer ID : 76467

A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons. A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season. So Please classify accordingly on the basis of duration and crops

Answer ID : 76470

I have raised this Querry because in case of One Bank they are treating a short term crop loan (disbursed on 1-4-2017) Standard as on 31-3-2019 . As per One Example circulated by that Bank they will treat it NPA not before Sep 19 While RBI Circular has directed to treat it NPA after two crop season default.More replies on this topic from Members can clear the confusion

Answer ID : 76483

For NPA classification of crop loan two crop season for short duration crop and one crop season for long duration crop only after due date of repayment is considered for NPA classification and not from date of disbursement. Hence calculate crop season accordingly. Moreover, the crop season is dependent on type of crop-Kharif or Rabi. Refer example given in ICAI guidance note for more clarification.

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