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A cash credit account will become an NPA if it

1. Remains out of order for more than 90 days
2. Stock statement not submitted for 60 days
3. Account not reviewed for 3 months
4. Remains out of order for more than 180 days

Correct answer: Remains out of order for more than 90 days

Solution

A cash credit account is treated as NPA when it remains out of order for more than 90 days. This is a standard banking norm for working capital accounts.

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