WHEN AN ACCOUNT IS SAID TO BE "OUT-OF ORDER"

Bank provides advances under different category. Generally we know that when a bank provides advances it becomes non performing asset if it cease to generate income. But here we discussed about when an account become out-of order. An advance account is said to be “out-of order” when outstanding balance in such account is in excess of the sanctioned limit/drawing power. Moreover where the outstanding balance is less than the sanctioned limit/drawing power but there are no credits continuously for 90 days as on the balance sheet date or credits are not enough to cover the interest debited during the same period.