विज्ञप्तियां उर्दू विज्ञप्तियां फोटो निमंत्रण लेख प्रत्यायन फीडबैक विज्ञप्तियां मंगाएं Search उन्नत खोज
RSS RSS
Quick Search
home Home
Releases Urdu Releases Photos Invitations Features Accreditation Feedback Subscribe Releases Advance Search
home  Printer friendly Page home  Email this page
English Release 23-April 2014
Date Month Year
  • Election Commission
  • Overall Facts at A Glance of 6th Polling Day on 24th April, 2014
  • Facts at a Glance: Jammu & Kashmir (6th Poll Day)
  • Min of Personnel, Public Grievances & Pensions
  • ACC Appointment
  • Min of Petroleum & Natural Gas
  • Production Performance of Oil & Natural Gas sector for the month of March, 2014
  • Global crude oil price of Indian Basket increased to US$ 107.08 per bbl on 22.4.2014
  • Ministry of Railways
  • Mobile and Desktop APP on Windows 8.0 for National Train Enquiry System (NTES) Commenced

Previous Date

 
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.

* * *


DSM/RS/bs
(Release ID :89658)

Web Ratana This site is winner of Platinum Icon for 'Outstanding Web Content' Web Ratna Award'09 presented in April 2010
Site is designed and hosted by National Informatics Centre (NIC),Information is provided and updated by Press Information Bureau
"A" - Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110 001 Phone 23389338
Go Top Top

उपयोग संबंधी शर्तें स्वोत्वाधिकार नीति गोपनीयता संबंधी नीति हाइपरलिंकिंग नीति Terms of Use Copyright Policy Privacy Policy Hyperlinking Policy