BPRD Circular Letter No. 16
June 05, 2000  

All Banks/NBFIs,

Dear Sirs,


In terms of BPRD Circular Letter No.27 dated 22nd June, 1999 banks/NBFIs were advised that rescheduling/restructuring of non-performing loans shall not change the status of classification of a loan/ advance unless the terms & conditions of rescheduling/restructuring are fully met for a period of atleast two years (excluding grace period, if any) from the date of such rescheduling/restructuring. The said period of two years was subsequently reduced to one year vide BPRD Circular Letter No.2 dated 29th January, 2000.

2. In this connection, it is clarified that the above modified instructions are effective prospectively from the date of issuance of the above referred Circular Letter No.27 i.e. 22nd June, 1999 and not retrospectively. In other words, the instructions shall apply to all such cases of rescheduling/ restructuring done after the date of issuance of the said Circular Letter.

3. Other instructions on the subject shall, however, remain unchanged.

Yours faithfully,

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