Q.Once the borrower fails to make Interest or Principal payments for ______ days the loan is considered to be a Non-Performing Asset.

Commercial banks perform several primary and agency functions. The important ones are:

• Acceptance of deposits — the basis of lending, taken through three accounts: Current (withdrawable any time up to the balance, no notice), Savings (encourages saving, RBI-set interest, some withdrawal limits) and Fixed/time deposit (higher interest, premature withdrawal forfeits part of the interest).
• Lending of funds — advancing deposits as overdrafts, cash credits, discounting of trade bills, term loans and consumer credit, supporting trade, industry and transport.
• Cheque facility — collecting customers' cheques; a bearer cheque is encashable at the counter while a crossed cheque can only be deposited into the payee's account. …