Advances to Primary Agricultural Credit Society (PACS) Farmers Service Society (FSS) ceded to Commercial Banks
In case of advances granted under the on-lending system, however, only the particular credit facility granted to PACSs or FSSs, which is in default for a period of two crop seasons in case of short duration crops and one crop season in case of long duration crops, as the case may be, after it has become due will be classified as NPA and not all the credit facilities sanctioned subject to such conditions as specified in the RBI’s latest Master Circular on Prudential Norms on Income Recognition, Asset Classification and provisioning pertaining to Advances dated July 1, 2015. The other direct loans & advances, if any, granted by the bank to the member borrower of a PACS/ FSS outside the onlending arrangement will become NPA even if one of the credit facilities granted to the same borrower becomes NPA.