Non Performing Assets (NPA):-
If the account is classified as NPA since February month due to non payment of Principal. As per the Revenue Recognition policy of the Bank, interest from NPA Account is not recognised by the Bank as an Interest Outstanding from the account. If, on 30 Th March, some amount of the instalment say Rs. 300 out of 1000 towards Principal amount is deposited into account. However, out of Rs. 1000, Rs. 800 is towards Principal. In this case, whether that account needs to be regularised i.e. Upgradation of NPA?
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