RBI/2016-17/198
DBR.No.BP.BC.49/21.04.048/2016-17
December
28, 2016
All Regulated Entities
Madam / Dear Sir,
Prudential Norms on Income
Recognition, Asset Classification and Provisioning pertaining to Advances
Please refer to circular
DBR.No.BP.BC.37/21.04.048/2016-17 dated November 21, 2016.
2. On a review, it has been
decided to:
(i) Provide 30 days, in addition
to the 60 days provided vide the abovementioned circular, in the following
categories of loans:
(a) Running working capital
accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is
?1 crore or less;
(b) Term loans for business
purposes, secured or otherwise, the original sanctioned amount whereof is ?1
crore or less, on the books of any bank or any NBFC, including NBFC (MFI).
This shall include agriculture loans.
Note: The limits at (a) and
(b) above are mutually exclusive limits applicable to respective
category of loans.
The above dispensation will
apply to dues payable between November 1, 2016 and December 31, 2016.
(ii) Permit all REs to defer the
down grade of an account that was standard as on November 1, 2016, but
would have become NPA for any reason during the period November 1, 2016 to
December 31, 2016, by 90 days from the date of such downgrade in the
following categories of accounts:
(a) Running working capital
accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is
?1 crore or less;
(b) Term loans for business
purposes, secured or otherwise, the original sanctioned amount whereof is ?1
crore or less, on the books of any bank or any NBFC, including NBFC (MFI).
This shall include agriculture loans.
Note: The limits at (a) and
(b) above are mutually exclusive limits applicable to respective
category of loans
3. The additional time given in
para 2 shall only apply to defer the classification of an existing standard
asset as substandard and not for delaying the migration of an account
across sub-categories of NPA.
4. Dues payable after January 1, 2017 will be covered by the extant
instructions for the respective REs.
Yours faithfully,
(S.S. Barik)
Chief General Manager-in-Charge
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