Answer:
a) If
any loan or advance is classified as 'Sub-standard' and 'Doubtful', interest
accrued on such loan will be credited to Interest Suspense Account, instead of
crediting the same to Income Account.
b) In
case of rescheduled loans the unrealized interest, if any, will be credited to
Interest Suspense Account, instead of crediting the same to Income Account.
c) If
classified loan or part of it is recovered i.e., real deposit is effected in
the loan account, first the interest charged and accrued but not charged is to
be recovered from the said deposit and the principal to be adjusted afterwards.
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