The Chief Executives,
All Banks/DFIs

Dear Sirs /Madam,

RESTRUCTURING/RESCHEDULING OF NON-PERFORMING LOANS

It has been decided to substitute the instructions notified vide BPD Circular Letter No. 34 dated the 13th December, 2000 on the captioned subject as under, with immediate effect.
“All fresh loans granted by the banks/DFIs to a party after re-scheduling/re-structuring of its existing facilities may be monitored separately, and will be subject to classification under Prudential Regulation-VIII on the strength of their own specific terms and conditions.”
2. All other instructions on the subject shall, however, remain unchanged.
3. Please acknowledge receipt.