Clarification regarding prudential norms on income recognition, asset classification and provisioning pertaining to advances- (Reserve Bank of India) (15 Feb 2022)
MANU/RMIC/0014/2022
Banking
1. Please refer to the clarifications issued in respect of Prudential norms on Income Recognition, Asset Classification and Provisioning vide circular DOR.STR.REC.68/21.04.048/2021-22 dated November 12, 2021 ('Circular').
2. In view of several queries received seeking certain clarifications, it is advised as under:
(i) The definition of 'out of order', as clarified in the Circular, shall be applicable to all loan products being offered as an overdraft facility, including those not meant for business purposes and/or which entail interest repayments as the only credits.
(ii) The 'previous 90 days period' for determination of 'out of order' status of a CC/OD account shall be inclusive of the day for which the day-end process is being run.
(iii) In case of borrowers having more than one credit facility from a lending institution, loan accounts shall be upgraded from NPA to standard asset category only upon repayment of entire arrears of interest and principal pertaining to all the credit facilities.
(iv) The circular does not make any changes to the requirements related to reporting of information to CRILC, which will continue to be governed in terms of extant instructions for respective entities1.
Tags : PRUDENTIAL NORMS INCOME RECOGNITION CLARIFICATIONS
Share :
|