Npa of a cash credit account

2733 views 4 replies

Nayanmoni

proprietor

33 Points Joined December 2016

Dear Sir/Madam, i have a cash credit account which limit is INR 50,00,000/-. yesterday i was called to my bank to deposit some money as it has not been credited any amount for the last three months. the bank manager also added that my account may become NPA if i don't deposit any amount continuously for three months. but i regularly pay interest and it still have INR 95000/-in this account. none of my interest due has been failed so far. in this respect i want to know if i regularly pay interest due on time and don't deposit any amount continiously for 90 days will my account become NPA?

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208770 Points Joined July 2016

Bank want business........ and not unproductive accounts...... so, indirectly pressured you.

No specific direction of RBI, but internal policies of banks and its managers !!!

Try to do some transactions.... may be just a deposit and withdrawal, at least every month so that the automatic alert may not trigger.

Nayanmoni

proprietor

33 Points Joined December 2016

THANK YOU VERY MUCH SIR, YOUR REPLY IS EXTREMELY PRECIOUS FOR ME..

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208770 Points Joined July 2016

My Pleasure......

AKHIL SAI Koppala

33 Points Joined June 2017

Master Circular No. DBOD.No.BP.BC.9/21.04.048/2014-15 dated July 1, 2014

As per the above cited circular the Cash Credit Account becomes an NPA (Clause 2.1.2.A(ii)) if an account remains out of order as per Clause 2.2 of the said Circular for more than 90 days then the borrower becomes NPA.

Bank cannot classify an account as NPA at its own discretion.

The rules to classify an account as NPA are in the above cited circular.