English Release 22-May 2013
- Vice President's Secretariat
- Vice President’s Banquet Speech at Tashkent, Republic of Uzbekistan
- Prime Minister's Office
- Prime Minister’s speech on the occasion of the release of the ‘Report to the People'
- Election Commission
- Enviornment Ministry Celebrates International Day for Biological Diversity
- Min of Agriculture
Farmers, Farming Communities Honoured for their Contribution in Conserving Plant Genetic Resources
- Min of Corporate Affairs
- ICSI Conducts National Seminar on ‘Indian Financial Code’
- Min of Defence
- Minister of State for Defence Visits AFMS Institutions
- Foundation Stone of Indian National Defence University will be laid Tomorrow
- Ministry of Finance
- P. Chidambaram’s Speech at ICSI Seminar on Indian Financial Code
- Change in Tariff Value of Gold Notified
- Min of Health and Family Welfare
- Indo-China Bilateral Meet on Healthcare Sector Held
- Azad Meets Sebelius at Geneva
- Min of Mines
Health Problems of Persons in Mining Sector
- Min of Petroleum & Natural Gas
- International crude oil price of Indian Basket falls sharply
to 101.98/US$ bbl on 21.5.2013
- Min of Power
Hydro Power Generation Capacity
- Planning Commission
- Madhya Pradesh Plan for 2013-14 Finalized
Ministry of Finance29-November, 2012 17:44 IST
|Rules on Loan Recasts |
After the Second Quarter Review of Monetary Policy 2011-12 by the Reserve Bank of India (RBI), a Working Group (WG) was constituted under the Chairmanship of Shri B. Mahapatra, Executive Director, RBI to review the existing prudential guidelines on restructuring of advances by banks/financial institutions and suggest revisions taking into account the best international practices and accounting standards. |
The Working Group had representation from a few select banks. Further, the report of the Working Group was placed on the website of the Reserve Bank for comments of all stakeholders including banks.
Given the larger objectives of financial stability and keeping in view international best practices to ensure that banks have sufficient provisioning buffer, RBI has announced, in its second review of Monetary Policy, to raise the provision for restructured standard accounts from the existing 2 percent to 2.75 per cent.
To address the issue of rise in NPAs and restructured advances of banks and with a view to improving effective information sharing among banks on credit, derivatives and unhedged foreign currency exposures, banks are advised to put in place, by end-December 2012, an effective mechanism for information sharing. Any sanction of fresh loans/ad-hoc loans/renewal of loans to new or existing borrowers with effect from January 1, 2013 should be made only after obtaining/sharing necessary information. Banks have been advised that non adherence to these instructions would be viewed seriously by RBI and banks would be liable to action including imposition of penalty wherever considered appropriate.
The compliance to the above regulatory and supervisory measures are aimed at reducing growth in NPAs and restructured advances by banks are being closely monitored by the RBI on an ongoing basis.
This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.
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(Release ID :89658)