ACCOUNTS WHICH HAVE CHANCE TO BECOME NP

DETAILS GIVEN BY BANK CHECKING OF THE ACCOUNT DONE BY US

DETAILS OF CUSTOMER OUTSTANDING AMT AMOUNT RECEIVED DATE OF DISBURSEMENT
CUSTOMER ID ACCOUNT HOLDER

we will give the above details only after s

has chances to become NPA .(that is if the
principle and interest amount or has mad
made only 50000rs till 31-3-25 then we w
bank as NPA.)

POINTS TO BE NOTED
1. WE ARE DOING AUDIT OF YEAR 2024-25 SA AS PER RULE WE WILL HAVE TO CONSIDER ONLY THOSE ACCOUNTS NPA OF WH
AMOUNT IS PAID FOR CONTINUOUS PERIOD OF 90 DAYS BUT IN PRACTICAL LIFE WE DON’T GO WITH EXACT HIT AND MISS RU
THAT MEANS WE WILL SEE ONLY THOSE LOAN GRANTED BY BANK UPTO 31-12-2022 OF WHICH NEITHER PRINCIPLE AMT IS P
ALSO IF THE DIFFERENCE IN TOTAL PAYMENT DONE BY CUSTOMER IS UPTO 50000RS THEN WE WILL GIVE THE BANK 2ND CO

2. If we consider any account as NPA then all the other accounts of such account holder in the same bank will be co
(This we will find out by customer ID of a person which will be same of all persons but will have more than one account no. if t

[Link] doing the audit we also check the kcc of the all the new accounts(current\saving\loan) made during the year for whic
is received by the bank or not.

4. While doing the audit we also check different details of KCC(kisaan credit card) like insurance,stock statement,review rene
1. Insurance Statement (under KCC)
➤ What It Is:
This is the insurance coverage availed for the crop or the farmer, linked to the KCC loan.
It usually covers:Crop Insurance and Personal Accident Insurance

➤ Auditor's Checklist:
Audit Point What to Check

Ensure the
insurance premium
is deducted from the
KCC disbursement or
✅ Premium Deducted separately paid.
 Verify copy of
insurance policy or
confirmation from
✅ Policy Document insurer.

The insured crop

and location should
match the KCC loan
✅ Correct Crop / Area purpose and land.
Insurance must
cover the entire
✅ Validity Period cropping season.

Check whether any

claims were made or
pending in case of
✅ Claim Settlement crop failure.

2. 📦 Stock Statement (for KCC, esp. large limits or KCC + CC limit)

➤ What It Is:
A periodic declaration by the borrower showing:Crops grown\Harvested stock\Inputs (seeds, fertilizers, etc.)

➤ Auditor's Checklist:
Audit Point What to Check

Check if the farmer

has submitted the
stock statement
within the required
✅ Timely Submission period.

For large limits,

check if the bank
has conducted a
field visit or
✅ Physical Verification (if any) verification.

Crop yield and stock

levels should match
land size and
✅ Reasonableness season.

Should be signed by
the borrower and
verified by the bank
✅ Documentation officer.
3. 🔁 Review / Renewal
➤ What It Is:
KCC limits are valid for 3 to 5 years, but:
An annual review is mandatory.
 Full renewal may be required at the end of the limit term.
Review includes checking:
Loan utilization
Repayment behavior
Landholding and cropping pattern
Enhancement of limit, if needed

➤ Auditor's Checklist:
Audit Point What to Check

Ensure that the

review is
documented
annually (even if no
✅ Annual Review Done changes are made).

Renewal proposal
should be
sanctioned before
expiry of original
✅ Renewal within Validity KCC limit.

Updated land
record, crop plan,
Aadhaar, and
borrower
✅ Fresh Documents Taken declaration.

For enhanced limits

or fresh loans,
ensure credit check
✅ CIBIL / Credit Check is done.

Only properly
reviewed/renewed
accounts are eligible
for continued
✅ Continuity of Subvention interest subvention.

[Link] committed by bank and borrowers together to protect the account from becoming NPA-
Borrowers pay some amount of money to the bank and on the same day or next day they take back their money from the ban
an auditor will have to check all the same day debit credit and will have to consider it invalid if it doesn’t actually reduce the o

[Link] declare any account as NPA we must consider the crop season rule.

some terms to be known

[Link] SUBVENTION-When the principle and interest amount of any loan account is paid continuously by the borrower a
like if the interest rate charged by the bank is 10% but the subsidy given by govt. is 3% then the actual interest rate to be paid
there are two types of subvention conditions:

1. Basic Subvention (e.g., 2%)

This is often given upfront or automatically to all eligible borrowers (e.g., farmers, MSMEs).
Timely repayment is not always required initially to get this part.
However, continued default may result in the bank reversing it or not giving it in future years.

2. Incentive Subvention (e.g., extra 3%)

This is strictly conditional on timely repayment of the principal and/or interest.

Missing the due date disqualifies the borrower from getting this portion.

🔁 In summary:

Missed or delayed payments = loss of subvention benefit (fully or partially).

No subvention is granted retroactively if the borrower starts paying regularly later.

So your statement is mostly correct:

If the borrower does not repay principal or interest regularly, they usually do not get the subvention — especially the extra

[Link] the borrower is getting the extra interest subvention based on the regularity of payment then such loan account can ne
YES
✅ Regular payments = Subvention + Standard Account

❌ Delays > 90 days = No Subvention + NPA status

VE CHANCE TO BECOME NPA
HE ACCOUNT DONE BY US TO KNOW THAT WHICH ACCOUNT WILL HAVE TO BE DECLARED NPA
DATE OF DISBURSEMENT AMT OF DISBURSEMENT UNREALISED INTEREST CLOSING AS ON 31.12.2022

the above details only after seeing the bank details given by bank ao account holders looks like this account
to become NPA .(that is if the loan granted by bank upto 31-12-22 but the account has not made any payment against
d interest amount or has made payment but very less like laon granted upto 31-12-22 of 4 lac but payment
0000rs till 31-3-25 then we will consider this account and all the other account of such person in the same
.)

HOSE ACCOUNTS NPA OF WHICH NEITHER PRINCIPAL AMT AND BANK NEITHER INTEREST
WITH EXACT HIT AND MISS RULE WE GIVE THE BANK AS A COCESSION OF APPROX 2YR
NEITHER PRINCIPLE AMT IS PAID AND NEITHER INTEREST UPTO 3103-2025 AND IN THAT
WILL GIVE THE BANK 2ND CONCESSION AND WILL NOT CONSIDER THIS ACCOUNT AS NPA

n the same bank will be considered as NPA.

more than one account no. if they are having more than one account in the same bank.)

made during the year for which we are doing the audit that whether all the documents(adhaar card\PAN\address\sign ETC)

stock statement,review renewal.

ertilizers, etc.)
ng NPA-
ack their money from the bank this is done just to protect the account from becoming NPA so as per RBI guidelines we
doesn’t actually reduce the overdue amount.

ntinuously by the borrower as per the due date then government becomes happy and give them subsidy in the interest
ctual interest rate to be paid by borrower is (10%-3%) =7%
ention — especially the extra benefit tied to timely repayment.

hen such loan account can never be declared NPA in that particular year....am i right please explain it