Npa account

Querist : Anonymous (Querist) 11 December 2023 This query is : Resolved
In a OD account October interest was debited on 31-10-23. No other transaction except for interest of November. At what date this account becomes NPA.

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An OD account becomes Non-Performing Asset (NPA) if the interest charged during a quarter isn't fully paid within 90 days of the quarter's end. Additionally, an overdraft facility is considered 'out of order' and thus NPA if it's not managed correctly. The specific date an account is classified as NPA is typically 90 days after the last transaction or the missed interest payment.

T. Kalaiselvan, Advocate (Expert) 11 December 2023
An account can be classified as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter.
2. Out of Order: Cash credit/Overdraft (CC/OD) is classified as NPA if it is 'Out of Order'.

Querist : Anonymous (Querist) 11 December 2023
On what date this account will be classified as NPA

T. Kalaiselvan, Advocate (Expert) 12 December 2023
It would be after 90 days of the last transaction or default in payment of interest.

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