All Banks

Dear Sirs / Madam,

Please refer to Annexure-C of BID Circular No.3 of 1989 regarding Guidelines for classification of Seasonal Advances. It is advised that agricultural seasonal & production loans shall be treated at par with short-term commercial loan for the purpose of classification. Accordingly classification & provisioning requirements relating thereto may be made as per criteria laid down in Prudential Regulation-VIII for short-term loans. However, banks should continue to report party-wise details of such classified loans on Performa No.9 to 12 in their annual return of loan classification being submitted to Banking Inspection Department.

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