Bank audit

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Ashwin (Querist)
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04 April 2012 In a CC account,the outstanding as on 31.03.2012 is less than the sanctioned/ drawing limit. There are no credits in the current quarter to service the interest debited in the current quarter. The interest of December quarter is srviced. Can this account be classified as out of order and made NPA

CA. Aryendra

CA. Aryendra (Expert)
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05 April 2012 No in case of CC and OD account should be out of order for 90 days. In your case account is not out of order.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 April 2012 Go to guidelines of RBI it says that any account which is dormant since more than 90 days then it is to be treated as NPA which means if no transaction is done in one quater then it is not to be treated as NPA