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English Release 22-November 2014
Date Month Year
  • President's Secretariat
  • State Civil Service Officers Undergoing the 116th Induction Training Programme At Lbsnaa Call On The President
  • Vice President's Secretariat
  • Vice President Emphasizes the Need for Continual Oversight to Ensure that Liberty is not Smothered in Material Prosperit
  • Min of Defence
  • National Cadet Corps Celebrates 66th Anniversary
  • Ministry of Finance
  • Competition Commission of India (CCI) Invites Comments from Public in Respect of Proposed Combination Between Holcim Limited and Lafarge S.A.
  • Min of Health and Family Welfare
  • Press Note on Ebola
  • Min of Information & Broadcasting
  • Team Of ‘Gour Hari Dastaan: The Freedom File’ Meets the Press at the 45TH IFFI
  • Directors and Producers of Indian Panorama Opening Films in the 45th IFFI Interact with the Media
  • Indian Philosophy of Mutual Respect and Love are My Source of Inspiration: Paul Cox
  • ‘Salam Cinema’ Screening Opens Mohsen Makhmalbaf Retro
  • Min of Petroleum & Natural Gas
  • Review of Modified DBTL scheme after one week of launch on 15.11.14 in 54 districts
  • Min of Urban Development
  • Venkaiah Naidu, Urban Development Minister, delivers Keynote Address at US – India Smart Cities Conclave
  • Shri M.Venkaiah Naidu visits market, residential areas in R K Puram, New Delhi to check cleanliness
  • Ministry of Water Resources
  • Government to Start Jal Gram Scheme in Every District Says Uma Bharti
  • Our District-Our Water Programme to be Launched to take the Message of Water Conservation to Every Village of the Country-Uma Bharti

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.

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