Understanding KCC (Crop Loan) NPA Norms with Example



Understanding KCC (Crop Loan) NPA Norms with Example 




Agricultural Advances:


The crop season for each crop, which means the period up to harvesting of the crops raised, would be as determined by the State Level Bankers’ committee in each state



Showing NPA dates for different crops after adopting the RBI Guidelines


             
           Restructured Accounts
·         The restructured substandard account would be eligible to be upgraded to the standard category only after one year after the date when the first payment of interest or of principal, whichever is earlier fails due subject to satisfactory performance during the period.

·         In case where after restructuring the performance is not as per revised repayment schedule for one year, then the account will be downgraded/classified as per original repayment schedule.

Illustration:

If account has become NPA on 1st April 2011 & has been rescheduled with fresh repayment starting from 1st April 2012, then the said account should perform satisfactorily upto 31st March 2013 then only it will be upgraded. However if it fails to perform, it will treated as if it is NPA from 1st April 2011.

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