RBI Clarification received by Maharashtra SLBC

RBI Clarification received by Maharashtra SLBC :

Loan may be treated as NPA immediately on completion of two crop seasons / one crop season (as the case may be, depending on the duration of
the crops) after the repayment due date. Two crop seasons after the due date should refer to only those two consecutive crop seasons in which the farmer usually undertakes crop production.

The crop season for each crop, means the period up to harvesting of the crops raised. The asset classification norms assume that there is normal crop
yield during the season for which credit is extended. Hence, immediately after consecutive two harvest seasons (as per the cultivation pattern followed by the farmer borrower) from repayment due date, the account is to be identified as NPA as per the revised guidelines. In case the yield is affected by natural calamities as declared by the State Government, the loan accounts should be restructured / rescheduled.

Example of NPA identification

Particulars

Kharif Season

Rabi Season

Horticulture crop

Perennial Crop Sugarcane

Perennial Crop

Banana

Year of

Finance

(Adsali)

(Mrig Bahar)

Date of

Finance

01-06-

2004

01-10-

2004

August

2004

01-07-

2004

01-06-

2004

Season Starts

June,

2004

October-

Sept. 04

01-07-

2004

01-06-

2004

Harvesting Time

Oct-Nov- 04

March-

May 2005

Dec- 05/

Jan- 06

Jun- 05/

Jul- 05

Repayment Due Date

31-03-

2005

30-06-

2005

30-06-2005

30-06-

2006

30-09-

2005

First Crop Season after due date

Season Starts	June 2005	October- 05	Sept. 05	01-07- 2006	01-06- 2006
Harvesting Time	Oct-Nov- 05	March-06	May 2006	Dec- 07/ Jan- 08	Jun- 07/ Jul- 07
Second Crop Season after due date
Season Starts	June 2006	October- 06	Sept. 06
Harvesting Time	Oct-Nov- 06	March- 07	May 2007
NPA Date	31-12- 2006	31-03- 2007	30-06-2007	31-12- 2007	30-06- 2007