Read the following statements and choose the correct option: Statement (I): A loan becomes a Non-Performing Asset (NPA) when the principal or interest payment remains overdue for 180 days. Statement (II): For agricultural loans, if principal or interest remains unpaid for two crop seasons (for short duration crops), the loan is classified as NPA.

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Banking · Non-Performing Assets (NPA)

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Statement (I) is incorrect but Statement (II) is correct.

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Answer 1

Both Statement (I) and Statement (II) are incorrect.

Answer 2

Statement (I) is incorrect but Statement (II) is correct.

Answer 3

Statement (I) is correct but Statement (II) is incorrect.

Answer 4

Both Statement (I) and Statement (II) are correct.

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