Technical npa is applicable to kisan credit card loans
Srinivasa
(Querist) 18 December 2015
This query is : Resolved
Dear Sir,
any body can you explain the technical npa correction and interest levied by bank for KCC-Crop loans.
Facts of the case above NPA,
1.KCC-loan taken from SBI in the year of 2007 as a initial year given 55000 and next year as a enhancement of loan of 10% above 62000/- made and second year end visited to branch, without asking the loan 20%, enhancement given 74000/ and same third year end made 20% of enhancement of KCC loan 89000/-and fourth year end he made it as 99000/- so..on it was gone upto 2011, for the above period farmer has not paid any single rupee whenever we are going to field officer he is increasing the credit limit adding the concerned interest so for the above four years, single rupee has not paid by borrower to bank and bank to borrower this way limit increased by Filed officer,as per KCC-norms of NPA classification if we have not paid upto 1year(prinicipal or interst) it will be classifed as NPA, so our loan went to NPA in the year of 2013, by this period interest reversed by bank, where already charged NPA period, but one fine morning we visited to bank of inquiry of Outstanding of KCC loan, he told 132000/- you have to pay, then we paid 33000/ cash those amount they have taken as a Technical NPA correction purpose, but again they charged the 28000/ interest for 1year 4months,
1.My Query is whether Technical NPA applicable to KCCcrop loans.
2.What does it mean Technical NPA.
3.Can i file a suit against regarding this NPA interest of 33000/
Please clarify sir,
Regards,
Srinivasa reddy Banda
HYD
P. Venu 
(Expert) 19 December 2015
It is better if the query is taken up with the CA Club of India.
Rajendra K Goyal
(Expert) 19 December 2015
There are possibility that the Bank has taken application for enhanced facility and has renewed the limit accordingly. You should discuss with the Banker.
what do you mean technical NPA applicable to crop loan?
On NPA account the interest is not debited from the account, but interest is due and charged whenever the amount is received.
Bank has right to charge interest on NPA, but this interest is to be shown in the account(debit to account) on actual realization as per RBI guidelines.
There would be no use to file case if interest charged by Bank on NPA account.
