RBI relaxes prudential norms on Income Recognition, Asset Classification
Posted on:23 Nov 2016 18:02:34
23 November 2016 Current Affairs GK: The Reserve Bank of India (RBI) has relaxed the prudential norms on income recognition, asset classification and provisions pertaining to advances.The decision came following the withdrawal of the legal tender of 500 and 1000 rupees notes.
Highlights : Taking into consideration the problems being faced by small borrowers in repaying their loan dues, RBI decided to provide an additional 60 days time, provided that the value of the loan or crop loan is less than 1 crore rupees.
Term loans, housing loans and agriculture loans, whether business or personal, with sanctioned amount of up to 1 crore rupees on the books of any bank or any NBFC, will be eligible for relaxation.Loans sanctioned by banks to NBFC (MFI), NBFCs, Housing Finance Companies and PACs and by State Cooperative Banks to DCCBs are also eligible for the same.It also applies to dues payable between 1 November 2016 and 31 December 2016. Dues payable before 1 November and after 31 December 2016 will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs.The additional time given shall only apply to defer the classification of an existing standard asset as substandard and not for restructuring of loans.
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