The Chief Executives,
All Banks/DFIs

Dear Sirs/Madam,

TREATMENT OF THE LOANS CONTRACTED BEFORE THE ISSUE
OF NEW PRUDENTIAL REGULATIONS - REGULATION R-1 & R-5

Please refer to the Prudential Regulations issued vide BPD Circular No.35 dated 28th October, 2003.

2. The following clarification may be noted regarding Prudential Regulation R-1 and R-5,
“All loans contracted before the issue of new Prudential Regulations i.e. October 28th, 2003, will be subject to the old Prudential Regulations till the date of their liquidation or renewal whichever occurs first.”

3. All other instructions on the subject shall, however, remain unchanged.

4. Please acknowledge receipt.